TAIPEI, Taiwan, R.O.C., July 28, 2022 – Primax Electronics (TWSE: 4915) today announced its preliminary results for the second quarter ended June 30, 2022 (2Q22). Primax’s 2Q22 consolidated revenue reached NT$20.28 billion, on net income of NT$758 million, which translates to an earnings per share (EPS) of NT$1.58.

Year-on-year (YoY), 2Q22 revenue increased 23.3%, while net income and EPS gained 20.8% and 15.3%, respectively. On a quarter-over-quarter (QoQ) basis, 2Q22 revenue was a 13.3% gain and net income increased 39.5%.

From a margin perspective, 2Q22 gross margin was 13.5%, a 0.2 percentage point (ppt) YoY improvement, while operating margin was 4.5%, a 0.5 ppt increase compared to a year ago. With imporving operating margin, operating income saw a significant jump in 2Q22, with YoY growth reaching 40.0% and QoQ growth at 50.2%.

In 2Q22, information products accounted for 49% of Primax’s total revenue, followed by smart lifestyle products (30%) and Auto / Industrial AIoT related products (21%). Compared to last year, Auto / Industrial AIoT products have significantly become more important to Primax, as the weighting has increased from 14% in 2Q21 and 16% in 4Q21 to the 21% in 2Q22.

“Despite China’s lockdown, which impacted production throughout most of the second quarter, Primax was still able to see strong revenue and profit growth. Our second quarter was supported by strong B2B camera and new camera module applications and products. For the audio segment, thanks to a gradual ease-off of component shortages, Tymphany was able to benefit from pushed back demand for its consumer products and continued growth for its professional audio,” said YY Hsiao, Senior VP and Chief Financial Officer of Primax. “Moving into 3Q22, we expect Primax’s revenue to be supported by growth in car ADAS, B2B camera, MFPs, other new businesses and products, and audio related products as it enters the peak season in the second half of the year.”

Based on the Primax’s current business outlook, management expects the overall performance for 3Q22 to be as follows:

Revenue is expected to see a YoY and QoQ growth. Profit should also see a YoY and QoQ growth. Despite uncertainities facing 2H22, Primax’s improved product mix from its “three senses in one” strategy, and continued growth in promising new sectors and new businesses should help offset the weakness from the PC / gaming sector.