Alchip Technologies Reports Better Than Expected Q3 Revenue, Operating Income and Net Income
Sees Continued Growth into the Fourth Quarter
Taipei, Taiwan November 23, 2021 –Alchip Technologies’ 2021 third quarter financial results reflected higher-than-expected achievements for revenue, operating income, net income and earnings per share.
Third quarter revenue reached $91.4 million, up 38.3% from year-ago revenue of $67.7 million, but down 5.1% from the second quarter’s record-setting quarterly revenue of $97.4 million. Operating income reached $14.4 million, up 14.5% from the third quarter 2020 operating income of $9.4 million, but down 8.6% on a quarter-by-quarter basis. Net income for the third quarter of 2021 reached $12.9 million, up 57.9% from Q3 2020 net income of $7.9 million, but down 7% quarter-on quarter. Third quarter 2021 earnings per share closed at NT5.12.
Quarterly results were driven by strong repeat-business demand, new designs, multiple tape outs, and significant design wins at the 7nm, 6nm, and 5nm advanced technology nodes. However, results were also somewhat tempered by tight engineering design resource, substrate shortages and wafer capacity constraints.
High-performance computing and niche applications accounted for 91% of Alchip’s third quarter revenue and 93% of overall 2021 revenue to date. Designs for 7nm+ process technology accounted for 44% of revenue for the third quarter and 60% of year-to-date revenue. Designs targeting 12/16nm process technologies accounted for 42% of third quarter revenue and 29% of revenue year-to-date.
Alchip’s outlook for the fourth quarter calls for industry-wide demand to remain strong, with especially robust design demand for leading edge technology nodes. High-performance computing demand is expected to maintain its momentum, with 7nm chips targeting artificial intelligence applications increasing their revenue contributions.
Alchip is traded on the Taiwan stock exchange. The company is extremely well respected in North America, Japan, Israel, Taiwan and China for its high-performance ASIC design methodology, flexible business model, best-in-class IP portfolio and advanced packaging technology expertise.