TAIPEI, Taiwan, R.O.C., October 27, 2022 – Primax Electronics (TWSE: 4915) today announced its preliminary results for the third quarter ended September 30, 2022 (3Q22). Primax’s 3Q22 consolidated revenue reached NT$22.34 billion, on net income of NT$940 million, which translates to an earnings per share (EPS) of NT$1.95.

Year-on-year (YoY), 3Q22 revenue increased 26.4%, while net income and EPS gained 36.9% and 30.0%, respectively. On a quarter-over-quarter (QoQ) basis, 3Q22 revenue was a 10.1% gain and net income increased 23.9%.

From a margin perspective, 3Q22 gross margin was 14.2%, a 0.7 percentage point (ppt) YoY improvement, while operating margin was 4.7%, a 0.5 ppt increase compared to a year ago. With improving operating margin, operating income saw a significant jump in 3Q22, with YoY growth reaching 41.7% and QoQ growth at 13.7%.

In 3Q22, information products accounted for 42% of Primax’s total revenue, followed by smart lifestyle products (33%) and Auto / Industrial AIoT related products (25%). Compared to last year, Auto / Industrial AIoT products have significantly become more important to Primax, as the weighting has increased from 12% in 1Q21 and 16% in 4Q21 to the 25% in 3Q22.

“Despite rising interest rates and weaker overall consumer sentiment, especially for PC / NB related products, Primax was still able to see strong revenue and profit growth. Our third quarter was supported by strong Auto& B2B camera and new camera module applications and products which lead to strong visual technology business growth. In addition, 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, General Manager and Chief Financial Officer of Primax. “Moving into 4Q22, we expect Primax’s revenue to be supported by growth in car ADAS, B2B camera, MFPs and other new businesses and products.”

Based on the Primax’s current business outlook, management expects the overall performance for 4Q22 to be as follows:

Revenue is expected to be flat YoY, while profit should see a YoY growth from a better product mix. Despite the uncertainties facing 4Q22, Primax’s continued growth in promising new sectors and new businesses should help offset some of the weakness from the PC / gaming and audio sector.