Giga Technology Q2 EPS 2.59 NTD Record High, Optimistic Outlook for Second Half

ASIC company Giga Technology (8227-TW) announced its second-quarter financial results today (November 11). Benefiting from stable business operations and external injections, the company's quarterly net profit exceeded 103 million NTD for the first time, reaching 103 million NTD, a 312% increase from the previous year, and achieving a record-high EPS of 2.59 NTD. The cumulative EPS for the first half of the year reached 3.23 NTD, surpassing the full-year figure of 2.05 NTD from the previous year.

Chairman and CEO Lai Chih-Hsien stated that the company's performance in the first half of the year demonstrates its competitive advantage in the advanced process design services market. With the continuous growth of demand for AI, high-performance computing (HPC), and high-speed transmission interfaces (SerDes), customers are increasingly relying on comprehensive partners that cover IP, design, trial production, and mass production. By strengthening the COT business model, the company is further deepening its cooperation with the three-party ecosystem of TSMC, Synopsys, and Largan Precision.

Giga Technology currently maintains a high level of backlog and plans to further expand its customer service scope in the U.S. market. The company remains optimistic about its operational outlook for the second half of the year and the full year.

Giga Technology's second-quarter revenue was 613 million NTD, a 65.9% increase from the previous quarter and a 121.7% increase from the previous year, setting a new record for quarterly revenue. The gross margin was 17.1%, a 1.8 percentage point decrease from the previous quarter and a 9.2 percentage point decrease from the previous year. The operating margin was 7.6%, a 0.8 percentage point increase from the previous quarter and a 5.2 percentage point decrease from the previous year. Benefiting from external injections of 67 million NTD, the net profit was 103 million NTD, a 312% increase from the previous quarter, and a turnaround from the previous year, with an EPS of 2.59 NTD.

Giga Technology's first-half revenue was 983 million NTD, a 107.9% increase from the previous year. The gross margin was 17.8%, a 5.4 percentage point decrease from the previous year. The operating margin was 7.3%, a 0.2 percentage point decrease from the previous year. The net profit was 128 million NTD, and the EPS was 3.23 NTD.

Giga Technology continues to invest in advanced processes, having successfully entered high-end nanometer process design-in projects for U.S. customers, with multiple projects below 12 nanometers already entering the mass production stage. At the same time, the company is further strengthening the Customer-Owned Tooling (COT) business model.

Giga Technology integrates the TSMC Design Center Alliance (TSMC DCA), Synopsys' IP OEM partnership, and its cooperation with Largan Precision (3711-TW) (ASX-US) in the packaging and testing field to provide customers with a one-stop solution covering IP, design, APR, DFT, tape-out, trial production verification, and mass production introduction. The goal is to help customers shorten the ASIC development cycle by more than 10%.