Faraday Reports First Quarter 2020 Revenues at NT$1,265 Million

ASIC Design Win Hits Record-High Quarterly Amounts in 1Q20

Hsinchu, Taiwan – April, 23 2020 -- Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its consolidated financial results for the first quarter of 2020. First quarter consolidated revenues were NT$1,265 million, down by 9.8% quarter-over-quarter and up by 15.3% year-over-year, with gross margin of 48.9%. Net income attributed to stockholders of the parent was NT$39 million, with a basic EPS of NT$0.16.

In the first quarter, the Company’s operation was hampered by global social economic uncertainties and the COVID-19 pandemic, with revenues at NT$1,265 million, a decline quarter-over-quarter but an increase year-over-year. From a product mix perspective, NRE revenues declined from the previous quarter due to the dynamic of design cycle and sales booking schedule of some projects. However, mass production, including the applications such as smartmeter and PoS, remained at the same level as the previous quarter. NRE revenues recognition was delayed due to prolonged Lunar New Year holidays and slow workforce resumption in China. Thus, the first quarter NRE sales were NT$285 million, lower than the past quarter. Nevertheless, the Company continued to see a steady stream of ASIC design wins. The number of design wins remained robust, with the total order amounts at all-time high. Existing customers accounted for over 80% of total projects won and over 75% of the projects are Faraday’s superior applications such as data communication and AIoT. The robust customer demand was a result of ever expanding customer base and solid client relationships in China that allowed the Company to effectively manage risks and maintained growth momentum amidst global social economic uncertainties.

Looking into the second quarter, the overall operation is expected to grow consecutively. NRE sales will back on course with new design wins and sales of mass production is expected to show consecutive growth quarter-over-quarter. The Company will continue to pay close attention to the COVID-19 pandemic and global economic outlook in order to capture the applications with relatively stable demands, while continuing to focus on expanding niche applications.

Summary of Operating Results

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