2024/04/30
LITEON Technology Reports First Quarter Sales of NT$28.8bn, with Net Profit of NT$2.4bn, EPS of NT$1.04
LITEON Technology (2301-tw) today reported the first quarter consolidated sales of NT$28.8 billion. With the continuous optimization of the product portfolio and the synergistic effects generated by the simultaneous introduction of AI empowerment and digitalizing operation management, the gross profit margin for the first quarter reached 20.3%, and the operating profit margin was 7.8%, each increasing by 1.5 ppt Y-o-Y. Of that, the operating expenses from R&D investment accounted for 6% of the quarter’s revenue, with a continued focus on cloud, optoelectronics, 5G, and new business investments. The net profits in the first quarter were NT$2.4 billion with EPS of NT$1.04. Meanwhile, the annual general meeting will be held on May 27th, 2024.
Efficient power management systems and thermal management technologies are competitive advantages for LITEON, effectively addressing the energy consumption challenges of AI servers.
“Artificial Intelligence (AI) is revolutionizing our world. This transformation isn’t just about software innovation, but also hinges on the construction of efficient infrastructure. AI servers consume significantly more energy than traditional servers, making a comprehensive power management system and advanced thermal management technology crucial. These are areas where LITEON has built significant competitive advantages over time. We are dedicated to enhancing the efficiency and sustainability of power systems in AI servers. By innovating alongside our ecosystem partners, we aim to create data centers that are not only high-performing but also environmentally friendly,” said Mr. Anson Chiu, President of LITEON Technology.
Significant progress achieved in high-wattage power systems and liquid cooling solutions through independent design and integration.
Driven by the enhancement of AI server power and cloud computing product specifications, the first quarter cloud power revenue grew by more than 10% Y-o-Y. LITEON continues to develop new generation AI server power solutions, among which 5.5KW power supplies and 33KW power shelves have been delivered continuously. Through integration and self-design capabilities, we further integrate key technologies such as integrated magnetic component design, heat management, and digital intelligent control to develop power solutions with 8KW and higher power density and conversion efficiency, in response to the high computing power and high energy consumption requirements of next-gen AI servers.
Moreover, LITEON continues to invest in advancing liquid cooling systems, independently developing core thermal management technology at the data center level, and establishing three major cooling systems: immersion, air cooling (side car), and in-row liquid cooling. LITEON leverages its four major competitive advantages: (1) Full active digital control with MCU; (2) Exclusive patented technology - active cooling management based on load; (3) Integration of power supply, liquid cooling, mechanism, software, and system integration solutions; (4) Fast global manufacturing and deployment capabilities, providing customers with a comprehensive AI server liquid cooling solution.
Outlook for Q2: operations expected to surpass Q1, steady long-term growth anticipated.
Looking ahead to the second quarter of 2024, the overall performance of the three major business segments is expected to grow compared to the first quarter. The growth momentum comes from high-value core businesses, including cloud computing power management, optoelectronic semiconductors, advanced IT-related power supplies, intelligent input devices, etc., and shipments are expected to gradually recover. At the same time, throughout the year, under the momentum of these high-value businesses, it is expected to return to the track of Q-o-Q growth. In the face of market and environmental challenges and uncertainties, LITEON will continue to its diversification, fitting customer needs and market dynamics, as a core strategy to enhance competitive advantages, and achieve long-term steady growth.
Media Contact
Irene Chou +886-2-8798-2888
Corporate Brand Value Development Center
LITEONtech.PR@liteon.com
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