WIN Semiconductors (3105) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was NT$3.71 billion, down 15% sequentially and 24% year-over-year, mainly due to declines in Wi-Fi PA and Cellular PA, while infrastructure and optics segments grew double digits quarter-on-quarter; capacity utilization dropped to 35%.

• Gross margin for Q4 was 20.4%, down 1.2 percentage points, with operating margin at -1.3%; net loss attributable to parent company was NT$352 million (EPS -0.83).

• Full-year 2024 revenue reached NT$17.458 billion, up 10% year-over-year, with EPS of NT$1.81 and gross margin at 23.2%.

• Recognized for ESG achievements, including DJSI World Index (2020-2024), S&P Global Sustainability Yearbook (2020-2025), and top 5% TPEX Corporate Governance Evaluation (2015-2024).

Financial highlights

• Q4 2024 gross profit was NT$758 million; operating loss was NT$48 million; net loss was NT$530 million, net margin -14.3%.

• Full-year 2024 net income was NT$340 million, net margin 1.9%.

• Book value per share at year-end was NT$89.91; cash and cash equivalents were NT$10,326 million (15% of assets).

• Capacity utilization dropped to 35% in Q4 from 50% in Q3; full-year average utilization was 50%.

Outlook and guidance

• Q1 2025 revenue expected to decline mid-single digit quarter-on-quarter due to seasonality and fewer working days.

• Gross margin for Q1 2025 projected at high-teens level.

• Cellular and Wi-Fi businesses expected to rise slightly, infrastructure to remain flat, and optical business to decline in Q1 2025.

• CapEx for 2025 expected to be similar to 2024, around NT$1 billion, with depreciation trending down.