Alchip Technologies Set Record Net Income and Earnings Per Share
Maintains 2022 Revenue Guidance
Taipei, Taiwan May 10, 2022–Alchip Technologies’ first quarter 2022 financial results set a quarterly net income record, while establishing two first-time marks for geographic revenue distribution and contributions to revenue by leading edge technologies.
First quarter 2022 net income set a record of $16 million, exceeding 2021 first quarter net income of $13.7 million by 17.2 percent and fourth quarter 2021 net income of $12.7 million by 26.1 percent.
Revenue for the first quarter of 2022 reached $93.5 million, up 4.7 percent quarter-on-quarter over fourth quarter 2021 revenue of $89.3 million, but down 0.3 percent from a year-ago first quarter revenue of $93.7 million.
At the same time, first quarter 2022 operating income was reported at $19.6 million, a 10.8 percent increase over first quarter 2021 results of $17.6 million, and a 28 percent increase over fourth quarter 2021 operating income of $15.3 million.
Earnings per share for the first quarter 2022 also set a record of NT6.32. The historic up-tick was partially driven by a strong first quarter gross margin of 38.6%, accounted for by strong NRE sales. NRE sales accounted for more than 60% of first quarter 2022 revenue.
On other matters, the Company left unchanged its guidance for another promising revenue growth in 2022, while commenting that the mild quarter-on-quarter revenue growth was due, in part, to constrained ABF substrate supplies, Demand remains strong, especially for high-performance computing applications.
President and CEO Johnny Shen pointed out that the 2022 outlook was based on business generated by leading edge technologies, remarking that the Company was seeing its highest worldwide demand for 5nm opportunities, accompanied by a dramatic increase in mass production revenue driven by artificial intelligence and high-performance computing applications.
Alchip also reported some upward pointing indications to some of its fundamentals. For the first time in the Company’s history, North America accounted for the largest share of revenue at 29 percent, topping previous-leader China’s 27 percent contribution. Japan accounted for 20 percent of revenue, with the rest of the world accounting for the remaining 24 percent.
On an application basis, high-performance computing accounted for 83 percent of first quarter 2022 revenue, up from its fourth quarter 2021 share of 78 percent and a total 2021 share of 81 percent.
Alchip is traded on the Taiwan Stock Exchange, with Global Repository Receipts trading on the Luxembourg Exchange. The Company is extremely well respected in North America, Japan, Israel, and Asia for its high-performance ASIC design methodology, flexible business model, best-in-class IP portfolio and advanced packaging technology expertise.