Taiwan IPC Weekly News 20 Mar, 2025

Flytech’s Performance Soars Amid AI Trend, Investment in AI Software Pays Off Handsomely

Source: 飛捷接單暴增兩倍，業績扶搖上，AI軟體業績今年將破億

Original News Issued Date: 11 March 2025

What to learn from this article:

• “Flytech has experienced a significant order increase, driven by the growing adoption of AI applications."
• "Flytech has strategically adjusted its product mix and heavily invested in AI software, including establishing subsidiaries for AI-driven solutions."
• "Flytech is committed to strengthening its presence in the European and North American markets, especially in the fast-food sector, while maintaining its production in Taiwan."

Flytech, a leading Point-of-Sale (POS) solution provider, is seeing a surge in orders fueled by the growing adoption of AI-driven applications. The company currently has over 60 active projects—more than twice the previous year’s average of just over 20. With this strong momentum, Flytech is optimistic about achieving double-digit revenue and profit growth this year, and first-quarter shipments are expected to defy the usual seasonal slowdown.

Chairman Ta Cheng Lin (林大成) highlighted the steady growth of the smart retail industry in recent years. While the U.S. market continues to show strong momentum, the European market is also poised for expansion, particularly as the Russia-Ukraine war approaches a resolution. This positive outlook extends into the coming year.

Regarding global trade policies, Lin emphasized that tariffs have become a major concern worldwide following the implementation of "Trump 2.0" policies. While many companies are expanding or considering expansion into the U.S. market, Flytech remains committed to Taiwan, adopting a strategy of stability amid an evolving landscape.

The chairman stated that Flytech has no plans to establish a factory in the U.S., citing the company’s high gross margin, which allows it to absorb the impact of tariffs. Additionally, the cost of setting up a U.S. facility may not be economically justified. As long as exchange rates remain stable, Flytech expects to maintain a long-term gross margin of over 40%.

Since the second half of last year, Flytech has seen an unexpected surge in orders, exceeding even internal projections. Lin revealed that the company currently has over 60 active projects—an unprecedented milestone. Previously, Flytech handled around 20 to 30 projects per year. In other words, project volume has more than doubled this year, providing strong momentum to fuel future business growth.

Flytech primarily focuses on the European and North American markets, where it holds a significant market share, particularly in the fast-food restaurant sector. With performance in the first two months surpassing expectations, the company's first-quarter results are already ahead of forecast.

General Manager Chia Hong Hsu (徐嘉宏) noted that Flytech's annual revenue peak typically occurs in the second and third quarters. However, due to an unexpected surge in orders during the second half of last year, the fourth quarter delivered the strongest performance of 2024. This momentum has continued into the first quarter of this year, which has the potential to outperform the previous fourth quarter. Additionally, the outlook for the second quarter remains robust, with significant potential for ongoing growth.

In addition to the surge in orders, Flytech has benefited from adjustments to its product mix and the integration of AI software to enhance value-added services, resulting in steady increases in both unit prices and gross margins. The company has made significant investments in AI software in recent years, establishing subsidiaries like Berry AI, Inefi, and Angible AI to focus on AI-driven retail solutions.

Among them, Berry AI has made significant strides in optimizing processes for the fast-food industry using AI-powered visual recognition technology, with annual revenue projected to exceed NT$ 100 million (US$ 3.03 million) this year. Meanwhile, Angible AI, founded at the end of last year, focuses on preventing checkout fraud in self-service payment systems within the retail industry. By directly addressing key pain points for retailers, Angible AI has already initiated several proof-of-concept (POC) projects in Europe and Southeast Asia within just a few months of its establishment.

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Acqutek specializes in supporting our customers with industrial-grade computers from Taiwanese manufacturers.