Phison: Fiscal July 2022 Financial Results

Phison Electronics Corp. announced its operating results for July 2022, with consolidated revenue of NT$5.342 billion, a growth rate of -2% Y/Y, the second highest for the same period.

The annual cumulative revenue reached NT$38.734 billion in July, with a growth rate of 13% Y/Y, a new high for the same period.

Y/Y, the total shipments of SATA and PCIe SSD controllers in July increased by over 12%, and the total shipments of industrial-grade controllers increased by nearly 38%, continuing to grow steadily. In addition, the total shipments of PCIe SSD controllers from the year to July increased by nearly 33% Y/Y, and the total memory bits shipments also increased by over 4%, both hitting new highs for the same period in history.

K.S.Pua, CEO, explained that the recent hotly debated situation of the overall high inventory level of the semiconductor industry is mainly caused by the slowdown in market demand (market under demand) and the slowdown in sales, rather than the oversupply in the market. In other words, there are many factors causing inflation at present, but as long as all manufacturers actively reduce their inventories, the problem of high goods prices will also be alleviated, and the inflation situation may also improve due to this. Eventually, the overall market will gradually return to normal levels of supply and demand.

K.S.Pua then emphasized that although the overall inventory level has risen due to slowing demand in the market, this is nothing new for Phison. On the contrary, the firm will continue to expand R&D expenditure vs. the trend, and will continue to strengthen the application of product lines and add more strategic partners to strengthen the foundation of the company. When the economy recovers in the future, Phison will have more growth opportunities than its peers.