Wiwynn Reports Fourth Quarter 2019 Financial Results

Following the Board of Directors meeting today (March 20), Wiwynn Corporation announced consolidated revenue of NT$49.554 billion, operating profit of NT$2.803 billion, profit before tax (PBT) of NT$2.457 billion, profit after tax (PAT) NT$1.949 billion, and basic earnings per share (EPS) of NT$11.24 for the fourth quarter ended December 31, 2019.

In the fourth quarter, we achieved record highs for the number of server shipments and consolidated revenue. Revenue increased by 6.3% year-over-year, and increased by 48.6% quarter-over-quarter. Benefit from scale economic and continuous price drop of key components, resulting in decreases in both average selling price and cost, year-over-year, gross margin increased by 1.9ppt to 7.3%, operating margin increased 2.1ppt to 5.7%, and PAT margin increased by 1.2ppt to 3.9%.

In fiscal year 2019, consolidated revenue reached NT$163.6 billion, which decreased by 9.6% year-over-year. The overall profitability was improved. Year-over-year, gross margin for the period increased by 1ppt to 6.9%, operating margin increased by 1.1ppt to 5.0%. PAT reached NT$6.169 billion and PAT margin increased by 0.7ppt to 3.8%. 2019 EPS was NT$36.42, decreased from NT$38.00 in 2018. The lower EPS is the diluted result of the capital increase in March 2019 for listing on the Taiwan Stock Exchange.

Due to global spread of coronavirus, the demand for cloud computing services is increasing but also increased unexpected factors affecting supply chains and logistics. Looking forward to 2020, our data center customer demand remains stable, the Company is committed to implementing epidemic precautions in the working environment and ensuring adequate and stable supply of raw material supply. The Company stays optimistic and will be cautiously watching.