Qisda’s Q3 profit halved as staple tech sales decline

• By Meryl Kao / Staff Reporter

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Qisda Corp (佳世達) reported net profit of NT$548.27 million (US$16.67 million) in the third quarter, down 56.76 percent quarter-on-quarter as revenue in its core information technology business declined from the previous quarter. However, profit was up 118 percent year-on-year.

Earnings per share fell from NT$0.38 in the previous quarter to NT$0.35, but were up from NT$0.15 a year earlier. Gross margin improved to 17.29 percent from 17.27 percent in the previous quarter and 16.89 percent a year earlier, the company said yesterday.

Third-quarter revenue grew 7.65 percent quarterly, or 8.05 percent annually, to NT$56.76 billion, the company said.

Qisda Corp chairman Peter Chen, center, president Cally Ko, second right, and other company executives hold signs and pose for a photograph at the Computex trade show in Taipei on June 2.

Photo: CNA

Revenue this quarter is expected to be similar to last quarter, as Qisda enters the traditional peak season with strong momentum in its business products and networking and communications businesses, it said.

Business products, which include goods related to artificial intelligence (AI) servers, AI data center infrastructure, edge AI and other industrial applications, are expected to post the strongest growth this quarter, with the momentum extending into next year, Qisda chairman Peter Chen (陳其宏) told an earnings conference.

AI server-related orders secured through subsidiary Aewin Technologies Co (其陽科技), such as liquid-cooling products and coolant distribution unit solutions, are expected to enter small-volume production this quarter, Chen said.

Qisda produces high-speed networking switches for AI data centers, with samples of its 1.6 terabit switches expected to be delivered to a major North American customer this quarter, company president Cally Ko (柯淑芬) said.

The company’s new integrated products combining its cooling products and 1.6 terabit switches are slated to begin shipments by the end of this year, Ko said.

While shipments of AI server-related products would remain small in the near term, more meaningful volumes are likely to emerge later next year, she said.

Qisda’s edge AI subsidiary DFI Inc (友通資訊) received a large order from retailers and launched new projects overseas, Ko said.

DFI is adding five surface-mount production lines in Taoyuan to increase its printed circuit board assembly capacity by about 45 percent, she said.

The firm has expanded its industrial PC and edge computing capabilities into motherboards and systems for uncrewed vehicles, targeting commercial applications such as agriculture and inspection, she added.

In the first three quarters, Qisda’s revenue was NT$161.04 billion, with the information technology (IT) business, including projectors, monitors and displays, accounting for 42 percent of revenue, followed by business solutions at 20 percent, medical business at 15 percent, networking and communications at 11 percent, high-value-added IT at 7 percent and others at 5 percent, company data showed.