ELAN Microelectronics : 4Q22 Earnings Report

February 22, 2023

ELAN 4Q22 Earnings Report

ELAN Microelectronics Corp. (code: 2458), a leading human-machine interface solution provider, today announced its 4Q22 consolidated financial results. 4Q22 sales came in at NT$1,964 million, down 52.8% on year, and down 30.3% qoq as ELAN undershipped the demand due to aggressive inventory depletion by the downstream customers, on top of the weak NB demand driven by inflations, interest hikes, Ukraine-Russia wars and CN lockdowns.

4Q22 gross margin declined by 1040 bps yoy and by 750bps qoq to conclude at 39%, due to higher wafer costs and one-off LTA cancellation charges (GM would have been 44.4% excluding one-off charges). Operating profit for the quarter shrank 98.3% yoy on smaller business scale and lower gross margin. Net profit - parent and EPS for the quarter were NT$48 million and NT$0.17, respectively.

2022 sales contracted by 28.9% on year to NT$ 13.03 billion as notebook demand turned weaker in 2022 and customers shifted their business focus to inventory adjustment after aggressive inventory build. Operating profit declined by 50.9% on year to NT$2,784 million due to smaller revenue base. Net profit - parent and EPS for 2022 were NT$2,152 million and NT$7.56, respectively.

1Q23 shipment momentum is expected to improve from 4Q22 as notebook customers' inventory issues ease. Outlook for 1Q23 is: revenue to be NT$2.2~2.4 billion; GM to be 43%~45%; and OPM to be 10%~15%.

http://www.emc.com.tw/emc/en.>>

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Unit: in NT$ M, EPS in NT$

	4Q22	4Q21	YoY
Consolidated Sales	1,964	4,162	-52.8%
Gross Profit	766	2,056	-62.7%
Operating Profit	19	1,133	-98.3%
Net Profit - Parent	48	1,321	-96.1%
EPS	0.17	4.64	-96.3%
Gross Margin	39.0%	49.4%

Presentation material for investor conference could be found at

http://www.emc.com.tw/emc/en/Investor/seminar

Contacts：
 Spokesperson: Dennis Liu	E-mail: [e-mail]
 IR contact:	Emily Chiang	E-mail: [e-mail]
	Elsie Lin	E-mail: [e-mail]

http://www.emc.com.tw/emc/en.>>

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