Phison: Fiscal June 2020 Financial Results

Phison Electronics Corp.‘s June 2020 revenue totaled NT$3,371mn, remaining the same level compared with the same period last year.

Accumulated revenue for January – June 2020 reached NT$23,722mn, with a Y/Y growth rate of 25%.

Although Covid-19 has not shown signs of slowing down worldwide, countries have begun to conditionally lift the lockdown due to concerns that the epidemic will greatly affect economic activity and recovery. Furthermore, Phison is also striving to maintain its level of operations and profitability in an atmosphere where countries are gradually lifting the lockdown.

Compared with the same period last year, total shipments of controller ICs in June grew by 12%, while total shipments of SSD and eMMC controller ICs grew by 50%.

In the total sales amount in June, SSD grew by 25% Y/Y, and PCIe SSD maintained a yearly growth of 75%.

Such growth shows that driven by firm’s high-end PCIe Gen4 PS5016-E16 SSD controller technology, consumers continue to generate considerable interest and demand for high-speed SSD storage products. In addition, for the total annual growth rate of total shipments from January to June, SSD and eMMC controller ICs grew by 40%, PCIe SSD controller ICs grew by closely 120%, and industrial controller ICs grew by 90%, the total bits of memory grew by approximately 20%, all hitting record highs.

*Not include industrial NAND module shipment

K.S. Pua, Phison CEO and chairman, said that in recent years, in addition to more and more computer systems changed from traditional mechanical HDD to SSD, many hardware systems that did not originally use NAND storage as the main storage device have gradually introduced NAND storage products due to the high cost/performance) value of NAND flash storage, which leads to the growth of NAND flash industry.

For example, the Pachinko machine did not use NAND storage products in the past because of the low screen resolution and simple game animation; however, in recent years, in response to consumer demand, the resolution and complexity of game animation have been greatly improved, so Pachinko machines have gradually introduced NAND storage products such as SSD. Due to the unique nature of the Pachinko industry, Phison has received orders from Japan’s largest Pachinko brand last year and began shipping this year, which is estimated that Phison’s revenue and profit will be positively beneficial.