TAIPEI, Taiwan, R.O.C., February 23, 2023 – Primax Electronics (TWSE: 4915) today held an earnings call for the fourth quarter ended December 31, 2022 (4Q22). Primax’s 4Q22 consolidated revenue reached NT$18.72 billion, on net income of NT$629 million, which translates to an earnings per share (EPS) of NT$1.33.

For the full year, Primax’s FY22 consolidated revenue reached NT$79.24 billion, on net income of NT$2.87 billion, translating into an EPS of NT$6.10. Year-on-year (YoY), FY22 revenue increased 10.6%, while net income and EPS gained 19.9% and 18.9%, respectively.

From a margin perspective, FY22 gross margin was 13.9%, a 0.8 percentage point (ppt) YoY improvement, while operating margin was 4.2%, a 0.3 ppt increase compared to a year ago. With improving operating margin, operating income saw a significant jump in FY22, with YoY growth reaching 18.9%.

In FY22, information products accounted for 47% of Primax’s total revenue, followed by smart lifestyle products (31%) and Auto / Industrial AIoT related products (22%). Compared to last year, Auto / Industrial AIoT products have significantly become more important to Primax, as the weighting has increased from 7% in FY18 and 15% in FY21 to the 22% in FY22.

“Despite rising interest rates and weaker overall consumer sentiment, especially for PC / NB related and consumer audio products, Primax was still able to see strong revenue and profit growth in FY22. Our FY22 results were supported by strong auto and B2B camera and new camera module applications, and products which lead to strong visual technology business growth. In addition, 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 and continued growth for its professional audio,” said YY Hsiao, General Manager and Chief Financial Officer of Primax. “Moving into 1Q23, we expect Primax’s top-line to be negatively impacted by weak consumer sentiment. However, with a better mix of higher margin products, cost cutting measures implemented and active cash flow management, profitability in 1Q23 should be flattish YoY.”

Based on the Primax’s current business outlook, management expects the overall performance for 1Q23 to be as follows:

Revenue is expected to see a double-digit YoY drop, while profit would likely be flattish YoY from a better product mix. Despite the uncertainties facing 1Q23, Primax’s continued growth in promising new sectors and new businesses should help offset some of the weakness from the PC / gaming and audio sector.