Chroma ATE (2360) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached TWD 5.5 billion, up 25% year-over-year and sequentially, driven by Semiconductor/Photonics Test Solutions.

• First half 2024 net sales were TWD 9.9 billion, a 13% increase year-over-year.

• Net income for Q2 was TWD 1.4 billion, up 47% from Q1 and 36% year-over-year; H1 net income was TWD 2.4 billion, up 20% year-over-year.

• EPS for Q2 was TWD 3.34, a 47% sequential and 38% year-over-year increase; H1 EPS was TWD 5.61 (basic).

• The independent auditor issued a qualified review opinion due to unreviewed financials of certain non-significant subsidiaries and investees.

Financial highlights

• Gross margin for Q2 was 59%, slightly down from 62% in Q2 2023; H1 gross margin was 59%.

• Operating income for Q2 was TWD 1.5 billion, up 25% year-over-year; H1 operating income was TWD 2.4 billion, nearly flat year-over-year.

• Free cash flow for H1 2024 was TWD 2.2 billion, a 388% increase year-over-year.

• Cash and cash equivalents increased to TWD 5.3 billion as of June 30, 2024.

• Cash dividends of TWD 6.6 per share were distributed for fiscal year 2023.

Outlook and guidance

• Second half 2024 sales are expected to surpass the first half, led by continued momentum in Semiconductor/Photonics Test Solutions.

• ATS segment guidance remains flat or slightly down for 2024 due to EV sector slowdown.

• Metrology business is expected to see meaningful contributions starting next year, driven by advanced packaging trends.

• The Group is assessing the impact of new IFRS standards effective in 2025 and 2027.