TAIPEI, Taiwan, R.O.C., May 2, 2022 – Primax Electronics (TWSE: 4915) today announced its preliminary results for the first quarter ended March 31, 2023 (1Q23). Primax’s 1Q23 consolidated revenue reached NT$14.68 billion, on net income of NT$573 million, which translates to an earnings per share (EPS) of NT$1.23.

Year-on-year (YoY), 1Q23 revenue dropped 18.0%, while net income gained 5.5%. On a quarter-over-quarter (QoQ) basis, 1Q23 revenue was a 21.6% drop and net income saw a 8.9% decline.

From a margin perspective, 1Q23 gross margin was 14.9%, a 2.3 percentage point (ppt) YoY improvement, while operating margin was 3.9%, a 0.5 ppt gain compared to a year ago.

In 1Q23, information products accounted for 45% of Primax’s total revenue, followed by smart lifestyle products (29%) and Auto / Industrial AIoT related products (26%). 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 19% in 1Q22 to the 23% in 1Q23.

“Our first quarter business was supported by strong B2B camera and new camera module applications and products. However, weak demand for PC related products and consumer audio products dragged down overall revenue for the quarter,” said YY Hsiao, General Manager and Chief Financial Officer of Primax. “Moving into 2Q23, 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 growth in 2Q23 should outstrip revenue growth.”

Based on the Primax’s current business outlook, management expects the overall performance for 2Q23 to be as follows:

Revenue is expected to see a double-digit YoY drop, while profit growth is expected to outperform revenue growth from a better product mix. Despite the uncertainties facing 2Q23, 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.