Axiomtek's September Performance Exceeds Expectations, Q3 Revenue Hits Record High; Aiming for a Turnaround This Year.

 

Source: 艾訊9月業績超預期，Q3營收飆新高，今年將拼逆轉勝 (yahoo.com)

Original News Issued Date: 09 Oct 2024

 

What to learn from this article:

  • “Axiomtek's consolidated revenue for the third quarter reached a record high."
  • "Axiomtek's growth is primarily driven by industrial automation customers in the United States and Europe."
  • "The overall environment remains challenging, with other Taiwanese industry manufacturers continuing to experience sluggish performance."



IPC manufacturer Axiomtek (3088) is reaping the benefits of the conclusion of its industrial control inventory clearance, which has revitalized the momentum for fulfilling deferred orders. In September, the company’s consolidated revenue reached NT$ 732 million (US$ 22.75 million), marking the second highest revenue in its history and setting a record for the same period, with a month-on-month increase of 30.9% and a year-on-year growth of 35.5%. Cumulatively, revenue for the first three quarters amounts to NT$ 4.941 billion (US$ 153.60 million), with the year-on-year decline narrowing to 2.7%.

 

Axiomtek has stated that it will maintain its strategic course this year, anticipating a turnaround that will slightly exceed last year's performance and continue to set new historical records. However, due to the significant revenue spike in September, which elevates the comparative base period, it is estimated that fourth-quarter performance will be approximately on par with or slightly lower than that of the third quarter.

 

With better-than-expected performance in September, Axiomtek's consolidated revenue for the third quarter reached a record high of NT$ 1.912 billion (US$ 59.44 million), surpassing the previous historical record of NT$ 1.851 billion (US$ 57.54 million) set in the second quarter of 2023. This represents an 18% increase compared to the previous quarter and a 15.88% year-on-year growth. Axiomtek attributed this growth primarily to the resurgence of order momentum from industrial automation customers in the United States, along with strong performance in Europe, indicating that IPC market conditions have begun to improve.

 

However, the overall environment remains challenging. In September, while a few companies like Axiomtek performed relatively well, other Taiwanese IPC manufacturers, including industry leaders Advantech, Aaeon, Avalue, and Nexcom, continued to experience sluggish performance, falling short of expectations.

Driven by positive performance incentives, Axiomtek's stock price surged on Wednesday, October 9th, reaching NT$ 97.8 (US$ 3.04), an increase of over 5%, or NT$ 4.9 (US$ 0.15).