Ilitek-KY Reports One-Time Liability Provision in Q2, EPS at NT$0.03; Q3 Revenue Expected to Grow Sequentially

Ilitek-KY (6962-TW) announced its second-quarter financial report today (the 13th). Due to a one-time provision for liability reserves, post-tax net profit declined to NT$14.1 million, down 95% quarter-on-quarter but up 7.7% year-on-year, with earnings per share (EPS) at NT$0.03. Looking ahead, the company remains optimistic, expecting consolidated revenue to maintain sequential growth, as the benefits of product price increases gradually materialize and some customers continue inventory stocking in response to rising prices and tightening capacity in mature process nodes.

Ilitek-KY’s Q2 revenue reached NT$4.803 billion, up 22.6% quarter-on-quarter and 2.8% year-on-year. Growth momentum stemmed from recovering smartphone demand, mass production and shipment of industrial touch products, and advance inventory buildup by certain customers responding to product price hikes and constrained capacity in mature processes, driving simultaneous growth across all three major product lines.

The company’s Q2 gross margin stood at 10.1%. This quarter, due to product mix and inventory adjustments, certain products failed to meet the committed wafer input volumes stipulated in capacity reservation contracts. In accordance with contractual terms and accounting standards, the company recognized a one-time liability provision of NT$387 million, negatively impacting gross margin by 8.1 percentage points. Excluding this one-time provision, gross profit would have been NT$874 million, with an adjusted gross margin of 18.2%. This provision is an accounting estimate item, involving no actual cash outflow during the period, and does not affect the company’s core competitiveness or long-term operational outlook.

Impacted by the above one-time cost recognition, Ilitek-KY’s Q2 post-tax net profit was NT$14.1 million, down 95% QoQ and up 7.7% YoY, with EPS at NT$0.03. Ilitek-KY stated that it is actively negotiating with suppliers regarding capacity assurance contract terms, aiming to secure stable capacity supply while minimizing the impact of such agreements on short-term financial performance.

For the first half of 2026, the company’s consolidated revenue totaled NT$8.721 billion, gross profit NT$1.558 billion, gross margin 17.9%, post-tax net profit NT$293 million, and EPS NT$0.61.

Looking ahead to Q3, Ilitek-KY expects consolidated revenue to maintain sequential growth, benefiting from the gradual realization of product price increase effects and continued inventory stocking momentum from certain customers responding to higher prices and tight mature-node capacity. The company remains optimistic about long-term trends, including rising OLED technology penetration driven by 8.6G panel line capacity ramp-up and upgrading demand from end devices powered by AI edge computing. It will continue investing in key technologies such as OLED drivers and high-end timing controllers, actively expanding market share in high-end and niche applications to capture next-generation display and touch opportunities.