Phison: January-November 2020 Financial Results

Phison Electronics Corp. announced financial results for the period January-November 2020.

November 2020 revenue totaled NT$4.218 billion (-3/7% Y/Y), while accumulated revenue for January-November 2020 reached NT$44.322 billion, up 9% Y/Y.

2020 is a year of change for the NAND industry market. Due to the impact of the epidemic, although many demands have been delayed, it has also stimulated the demand for WFH. Because the company has a complete product line, it not only survives the severe situation of the epidemic, but also has the opportunity to set new highs in revenue and profit, proving firm’s solid foundation.

Phison announced the operating results for November 2020, with consolidated revenue of NT$4.218 billion. The total revenue of the whole year to November reached NT$44.322 billion, and the annual growth rate was nearly 10%, setting a new historical high for the same period.

Compared with the same period last year, the total shipments of SATA and PCIe SSD controllers in November grew by nearly 43%, a record high in a single month; the total shipments of eMMC module products also benefited from the continuous recovery of the embedded application market, where the Y/Y growth is over 250%.

In addition, for the total annual growth rate of total shipments accumulated throughout the year (January to November), the total shipments of SSD and eMMC memory modules grew by nearly 25%, setting a new historical high for the same period; total shipments of PCIe SSD controller grew by nearly 87%, a record high over the same period in history; total shipments of industrial controller grew by nearly 19%, another record high for the same period in history; total shipments of memory bits (total bits) grew by nearly 10%, which also sets a new historical high over the same period.

The overall growth in shipments shows that PCIe SSDs continue to penetrate the various storage application markets as a mainstream trend. In addition, the proportion of PCIe SSDs in PC OEMs has continued to increase, which will directly and indirectly contribute to the revenue and profit of Phison’s high-end products.

K.S. Pua, CEO and chairman, said that due to the Covid-19 epidemic this year, the overall storage demand has been affected to varying degrees, such as the deferred market demand for consumer applications, the deferred demand for automotive systems, the increased demand in the NB market, the increased demand in the education market, in the game console market, server market demand rises, and embedded system market demand deferred. Fortunately, Phison has a complete layout in various storage application markets. Even if the market is unpredictable, the overall revenue and profit can still maintain a certain level or even grow.

Facts

• Over 20 years experiences in NAND controller IC design and module integration.
• Over 2,300 employees globally, and more than 75% are engineers
• Over 1,900 memory-related patent globally.
• 3 major focuses: enterprise, embedded, and consumer market.
• 600 million average annual controller shipment.
• $1.45 billion sales revenue in 2019 and no debt.
• Confident that its business model can produce consistently strong cash flow and profits over the long-term amidst NAND memory market cycles.
• Maintain long-term partnerships with global NAND flash supply sources and with downstream module customers.