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DFI, the world's leading brand in embedded motherboards and industrial computers, held an online investor conference on March 13 to explain that in the first half of 2023, DFI Embedded (embedded business) benefited from reduced material shortages and strong market demand. DFI expects to perform better than in the same period last year, and quarterly growth is predicted. Although industry growth has slowed due to global economic factors and inventory adjustments, DFI is looking forward to the first half of 2023. DFI is cautiously optimistic about the market outlook due to strong global infrastructure demands and AI computing requirements.
DFI's revenue, gross operating profit, and operating profit last year grew simultaneously, with revenue and gross profit reaching record highs. Consolidated revenue for the year was NT$16.190 billion, representing an annual increase of 22%. Gross operating profit was NT$3.282 billion, representing a yearly increase of 29%. Operating profit was NT$731 million, representing an annual increase of 39%.
The second half of 2022 met the projections for the period. Overall operating indicators performed better than in the year's first half. Net profit after tax in 2022 was NT$597 million. Net profit attributable to the parent company was NT$528 million. Earnings per share (EPS) reached NT$4.61. Although there was a decrease compared to the previous year, the main reason is that the non-industry profit injection from selling the Xizhi factory land in 2021 increased the base period. Judging from the current orders, DFI Embedded has a chance of performing better in the first quarter of this year compared to the same period last year.
Compared to the previous quarter, single-quarter operations were affected by the holidays in Europe and the United States at the end of the year and the lockdowns in China. However, with the increase in production capacity of the new plant and the alleviation of material shortages, DFI's overall order delivery improved, resulting in higher revenue, gross profit, and operating profit compared to the same period last year. DFI's fourth quarter consolidated revenue was NT$4.347 billion, up 6% QoQ and 2% YoY. Gross operating profit was NT$893 million, down 1% QoQ and up 5% YoY. Net profit after tax attributable to the parent company was NT$135 million. EPS reached NT$1.18.
Looking towards the future, DFI Vice Chairman Michael Lee stated, although industry growth in the first half of the year is limited by high global inflation, monetary policies, and inventory adjustments, the momentum of the industry may be revitalized with the United States adjusting their interest rates according to employment and inflation data, Europe's slowing inflation, and the improving epidemic situation in China. With the demand for new infrastructure, energy transformations, and automation, DFI's orders may increase month by month. With the trend of generative AI computing started by ChatGPT recently, the demand for software and hardware is increasing. In response, DFI has an advantage due to its long-term investments in embedded boards, network security, industrial automation, and high-performance computing.
Alexander Su, President of DFI, stated that DFI Embedded's performance has benefited from the improving material shortages and clear and strong demand for new infrastructure in different regions and markets. DFI Embedded is expected to perform better in the first half of 2023 compared to the same period last year and is expecting quarter on quarter growth. In terms of overall order delivery, inventory pulling has been affected by the lockdowns in China at the end of the previous year, leading to customers delaying orders. However, with the lifting of lockdowns in China, the pressure on inventory is expected to improve. DFI will continue to optimize inventory levels and review and respond to machine tool needs, gradually ending the adjustment period.
With the trend of corporate digital transformations, DFI will implement comprehensive production and quality management through the three operating strategies of "smart new factories," "AIoT product lines," and "flexible and stable supply chain deployment." DFI will continue to provide integrated solutions and realize exceptional product performance and stable supply services to create maximum value for customers and become the best partner for the intelligentization OT of corporate operational technology.
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About DFI
Founded in 1981, DFI is among the top 3 IPC providers of high-performance computing technology across multiple embedded industries. DFI’s industrial-grade solutions enable customers to optimize their equipment and ensure high reliability, long-term life cycle, and 24/7 durability in various markets, including Industrial Automation, Medical, Gaming, Transportation, Energy, Mission-Critical, and Retail. Find out more at https://www.dfi.com/.
Media Contact
Melanie Ho melanie.ho@dfi.com
Iris Chou iris.chou@dfi.com