Sun-A Tech's June Revenue Up 89% Year-on-Year; First Half Profit Expected to Surpass Full Year 2022

Taipei, July 8 (CNA) - Low Earth Orbit (LEO) satellite and millimeter-wave communication component manufacturer Sun-A Tech announced today that its June revenue reached NT$257 million, a 13% decrease month-on-month but an 89% increase year-on-year. Although shipments were deferred due to customer product revisions, customers have paid compensation for order adjustments as per their agreements, amounting to profits equivalent to normal shipments. Therefore, the company's first-half profit is still expected to surpass the full year of 2022.

Sun-A Tech's statistics show that its revenue for the first half of this year was NT$1.922 billion, an approximate 70% increase compared to the same period last year. This indicates that although second-quarter revenue was affected by customer product revisions and shipment schedules were adjusted, the company maintained a high revenue growth rate in the first half, highlighting the strong momentum in the LEO satellite industry.

Sun-A Tech stated that despite recent revenue fluctuations due to customer product revisions, the industry's growth trend remains unchanged. Not only are existing customers closely monitoring capacity expansion progress, but several new, large-scale LEO satellite customers have also begun collaborative design and development projects.

The company explained that based on the continuous expansion of customer capacity demands, Sun-A Tech has also been consistently increasing its capital expenditures in recent years. Last year, capital expenditures for capacity enhancement reached NT$800 million, with an additional NT$400 million invested in the first half of this year. The total investment for capacity expansion this year is expected to exceed NT$1 billion.

Sun-A Tech pointed out that as LEO satellite communication is an emerging application market, its industry ecosystem differs from the highly standardized semiconductor or consumer electronics industries. The specifications for related systems, modules, and components will continue to be adjusted with customer technological advancements, system architecture optimization, and mass production demands.

Sun-A Tech further elaborated that recent shipment adjustments were due to temporary changes initiated by customers. Customers have paid compensation for order adjustments as per their transaction agreements. This compensation, equivalent to the profits that would have been recognized from normal shipments, is recorded as non-operating income in the current period. Consequently, the actual profit performance is not significantly different from the original financial forecast, and the first-half profit is projected to exceed the total profit for the full year of 2022. (Editor: Lin Chia-hsien) 1150708