TAIPEI, Taiwan, R.O.C., April 28, 2022 – Primax Electronics (TWSE: 4915) today announced its preliminary results for the first quarter ended March 31, 2022 (1Q22). Primax’s 1Q22 consolidated revenue reached NT$17.89 billion, on net income of NT$543 million, which translates to an earnings per share (EPS) of NT$1.23.

Year-on-year (YoY), 1Q22 revenue increased 4.3%, while net income and EPS gained 8.4% and 8.8%, respectively. On a quarter-over-quarter (QoQ) basis, 1Q22 revenue was a 12.2% drop and net income saw a 6.1% decline.

From a margin perspective, 1Q22 gross margin was 12.6%, a 0.1 percentage point (ppt) YoY improvement, while operating margin was 3.4%, flat compared to a year ago.

In 1Q22, information products accounted for 53% of Primax’s total revenue, followed by smart lifestyle products (26%) and Auto / Industrial AIoT related products (21%). Compared to last year, Auto / Industrial AIoT products have significantly become more important to Primax, as the weighting has increased from 13% in 1Q21 and 16% in 4Q21 to the 21% in 1Q22.

“Our first quarter business was supported by strong car ADAS, police body camera and new camera module applications and products. 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,” said YY Hsiao, Senior VP and Chief Financial Officer of Primax. “Moving into 2Q22, we expect Primax’s revenue to be supported by growth in car ADAS, police body camera, MFPs and other new businesses and products .”

Based on the Primax’s current business outlook, management expects the overall performance for 2Q22 to be as follows:

Revenue is expected to see a YoY growth. Profit should also see a YoY growth, with operating margin seeing an improvement from 2Q21. However, total operating expenses would also increase in 2Q22, as Primax is heavily invested in human capital for its new businesses, showing a commitment of investing for the future.