Lite-On Technology (2301) investor relations material

Executive summary

• Q1 2026 revenue reached NT$43.4 billion, up 19% YoY, driven by strong AI and cloud demand, with Cloud & AIoT revenue surging nearly 50% and cloud-related business growing over 70%.

• Net profit after tax was NT$3.78 billion, EPS NT$1.66, up 10% YoY, marking a five-year high for Q1.

• Excluding a one-time inventory write-down, gross margin was 22.8% and operating margin 10.5%, driven by AI infrastructure demand and global capacity expansion.

• Optoelectronics and ITC segments saw enhanced shipments, especially in high-end and LEO satellite power supplies.

• Growth momentum sustained despite a 2% QoQ revenue decline due to consumer segment softness.

Financial highlights

• Gross profit was NT$9.4 billion, gross margin 21.7%; excluding a one-time inventory write-down, GPM was 22.8%.

• Operating profit reached NT$4.1 billion, OP margin 9.4%; adjusted OPM was 10.5%.

• Net profit to parent was NT$3.78 billion, up 10% YoY; EPS NT$1.66, up from NT$1.51 YoY.

• Cloud and AIoT OP was NT$3.43 billion, up 60% YoY.

• Optoelectronics revenue grew 5% YoY to NT$7.2 billion; ITC revenue declined 5% YoY to NT$13.3 billion.

Outlook and guidance

• Q2 2026 revenue and profit expected to exceed Q1, driven by new AI power products and satellite power.

• Mass production of 110 kW power shelf to begin in June; 800 VDC 1.5 MW power rack qualification in Q3, mass production in Q4.

• AI-related revenue targeted to reach 30% of total revenue in 2026.

• Power solutions for LEO satellites expected to double revenue in Q2 and full year.

• Participation in COMPUTEX Taipei in June to showcase AI, cloud, and power solutions.