Faraday Reported 2010 Second Quarter Results

Second Quarter 2010 Highlights[1]:

•  Year-over-year revenue increased 16.3% to NT$1,602million (US$50.2million)
•  Gross margin, 42.4%
•  Net income of NT$265million (US$8.3 million)
•  Earnings per share of NT$0.72 for the quarter

Hsinchu, Taiwan –July 30, 2010 – Faraday Technology Corporation (TSE: 3035), a leading fabless ASIC design solution and silicon IP provider, today announced its unconsolidated operating results for the quarter ended June 30, 2010. The second quarter revenue was NT$1,602 million, while net income and basic earnings per share came to NT$265 million and NT$0.72, respectively.
 
IP revenue increases 11% compared with last quarter; ASIC 5.1%, while NRE 45.4% benefiting from more deliveries of engineering samples. In terms of the gross margin, despite of the fact that ASIC shares more than 80%, the margin still keeps as high as in Q1, at the rate of 42.4%. Moreover, EPS is even higher than last quarter by 24.1%, achieving NT0.72 because of the record-high revenue, and the well control of ASIC cost.

Looking into Q3, the momentum major comes from the strong demand of display, and multimedia sectors, and additionally the accelerating shipment of USB 3.0. However, due to the capacity constraint and the decelerating growth from consumer applications, the overall revenue is expected to have moderate QoQ growth. The good news is that the momentum will keep driving and the QoQ pattern will go upwards till end of this year, breaking the used-to-be seasonality, which thus creates high chance to achieve the guidance of yearly revenue that was disclosed at the beginning of this year.

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with ROC GAAP, which differ in some material respects from generally accepted accounting principles in the United States. They are un-audited, un-consolidated, and represent comparisons among the three-month period ending June 30, 2010, the three-month period ending March 31, 2010, and the equivalent three-month period that ended June 30, 2009. For all 2Q10 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$31.929 to one U.S. dollar.

Summary of Operating Results

: IR Conference Presentation