Advantech's Q3 Order Visibility Improves, Pull-Through Significantly Better Than Last Year

Industrial computer manufacturer Advantech (6206-TW) announced that its Q3 order visibility has improved significantly, with a notable increase in pull-through compared to the same period last year. Additionally, its Vision AI software subsidiaries, Berry AI and Angible, have both reached the stage of scaled commercialization, with a projected doubling of growth in the second half of the year.

Advantech continues to expand its vertical application markets, while on the cost side, it is promoting diversified procurement and supply chain flexibility to ensure stable supply of key components. By leveraging procurement flexibility, it aims to strengthen overall profit quality. The company expects its overall operations in the second half of the year to continue the cumulative year-on-year growth trend in revenue.

Furthermore, Advantech's software revenue is expected to see a multiple increase in the second half of the year, steadily advancing towards the goal of a 5% annual revenue share for its software subsidiaries. Regular software revenue can effectively balance the seasonal fluctuations of its core hardware design and manufacturing business. The company expects its overall operations in the second half of the year to continue the cumulative year-on-year growth trend in revenue.

Currently, the business progress of Advantech's three software subsidiaries is accelerating. Inefi, which focuses on the UEM (Unified Endpoint Management) unified endpoint management software platform, and Angible, which specializes in retail Vision AI solutions, both achieved Q2 revenue that exceeded their full-year performance of the previous year.

Berry AI, which specializes in Vision AI applications for the food and beverage industry, saw its Q2 revenue triple compared to the same period last year. Currently, it is gradually forming a differentiated technological barrier in data accumulation, Vision AI recognition models, and integration with actual operational scenarios in the food and beverage sector, demonstrating the market potential for scaled adoption.