![]() ![]() By offering flexibility in its OEM pricing, the company will maximize its profitability through utilization rate management. The firm is managing low-end tester prices at the customer-by-customer level. Fortunately, it maintained price levels for its high-end tester, supported by higher unit-test rates. Since gold consumption increased in ChipMOS’s gold bumping, its raw material costs increased. Nearly one-quarter of DDIC revenue came from automotive panels in the first quarter, up from 19%.ĬhipMOS is seeing signs that the automotive panel will increase COG, a package type after it increased by 7%. Utilization in DDIC was especially strong at 58%.įrom the presentation shown above, automotive strength is a catalyst for DDIC revenue. ![]() It benefited from higher testing and assembly usage. Investors are comforted with the company’s utilization rate rising to 52%. Its gross margin of 12.4% fell by 210 basis points. Macroeconomic weakness, continued inventory adjustments from customers, and inflation are the three general reasons for the weaker revenue. In the first quarter of 2023, ChipMOS posted revenue falling by 31.5% Y/Y to $151.1 million. ![]() The firm posted healthy free cash flow, has a good balance of cash and cash equivalents, and an overall strong financial position. Knowing that shareholders did not sell off the stock when it posted a steep decline in revenue. Its mobile display driver integrated circuits (“DDIC”) accounted for 35% of its product revenue in the first quarter. Investors who followed ChipMOS ( NASDAQ: IMOS) will appreciate the semiconductor firm’s exposure outside of the computing and consumer space. ![]()
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