ChipMOS REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

Rhea-AI Summary

ChipMOS reported its Q4 and full year 2024 financial results, showing a 6.3% increase in full year revenue to NT$22,695.9 million (US$692.2 million) compared to 2023. However, gross margin declined to 13.0% from 16.6% in the previous year. Full year net profit was NT$1,420.0 million (US$43.3 million), translating to earnings of NT$1.95 per basic common share or US$1.19 per basic ADS, down from NT$2.60 per share or US$1.59 per ADS in 2023.

For Q4 2024, revenue decreased 11.0% quarter-over-quarter to NT$5,399.6 million and 5.7% year-over-year. The company maintains a strong financial position with NT$15,219.0 million (US$464.1 million) in cash and cash equivalents. The Board has authorized a dividend of NT$1.2 per common share (pending shareholder approval) and announced a NT$350 million share repurchase program.

Positive

• 6.3% increase in full year 2024 revenue to NT$22,695.9 million (US$692.2 million)
• Strong cash position with NT$15,219.0 million (US$464.1 million) in cash and cash equivalents
• NT$350 million share repurchase program announced
• NT$1.2 per common share dividend authorized (pending shareholder approval)

Negative

• Q4 2024 revenue decreased 11.0% quarter-over-quarter and 5.7% year-over-year
• Full year gross margin declined to 13.0% from 16.6% in 2023
• Net profit for 2024 decreased to NT$1,420.0 million from NT$1,893.4 million in 2023
• Net free cash outflow of NT$938.3 million for fiscal year 2024

Insights

Financial Analyst

ChipMOS Technologies' full year 2024 results reveal a company navigating profitability challenges despite revenue growth. While annual revenue increased by 6.3% to NT$22,695.9 million, the company experienced significant margin compression with gross profit dropping to 13.0% from 16.6% in 2023. This margin deterioration directly impacted the bottom line, with earnings per share declining 25% year-over-year to NT$1.95.

The fourth quarter results are particularly concerning, showing both sequential (-11.0%) and year-over-year (-5.7%) revenue declines. This negative momentum, combined with the 51.8% year-over-year drop in Q4 net profit to NT$232.2 million, suggests ChipMOS is facing intensifying headwinds as it enters 2025.

What's notable is the company's capital allocation strategy amid these challenges. The NT$1.2 per share dividend represents a substantial 5.8% yield at current prices, while the NT$350 million share repurchase program (approximately 1.5% of outstanding shares) indicates management believes the stock is undervalued. These shareholder-friendly actions are supported by a remarkably strong balance sheet with NT$15,219 million in cash, representing nearly 64% of the company's market capitalization.

The shift from non-operating expenses to non-operating income (NT$154.6 million in Q4) helped partially offset operational challenges. This positive non-operating performance likely stems from higher interest income on their substantial cash reserves and potentially favorable currency movements.

The NT$938.3 million free cash outflow for capacity expansion, despite margin pressures, suggests management is positioning for an anticipated industry recovery. As an OSAT provider, ChipMOS typically experiences amplified effects of semiconductor cycles. The current margin compression likely reflects both industry-wide pricing pressures and underutilization of existing capacity – a common phenomenon during semiconductor downturns.

For investors, the key question is timing: ChipMOS appears financially equipped to weather the current downturn with its fortress-like balance sheet, but the duration of margin pressures and the timeline for returns on capacity investments remain uncertain. The substantial cash position provides both downside protection and optionality for strategic initiatives as industry conditions evolve.

• 6.3% Increase in Full Year 2024 Revenue Compared to Prior Year
• 13.0% Full Year 2024 Gross Margin Compared to 16.6% in 2023
• Full Year 2024 Net Earnings of NT$1.95 per Basic Common Share or US$1.19 per Basic ADS Compared to Net Earnings of NT$2.60 per Basic Common Share or US$1.59 per Basic ADS for the Full Year 2023
• Strong Financial Position and Liquidity with NT$15,219.0 Million or US$464.1 Million Balance of Cash and Cash Equivalents
• Dividend of NT$1.2 per Common Share Authorized by Board Pending Shareholder Approval at May 2025 AGM
• NT$350 Million Share Repurchase Program Announced

HSINCHU, Feb. 25, 2025 /PRNewswire-FirstCall/ -- ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and Nasdaq: IMOS), an industry leading provider of outsourced semiconductor assembly and test services ("OSAT"), today reported consolidated financial results for the fourth quarter and the full year ended December 31, 2024. All U.S. dollar figures cited in this press release are based on the exchange rate of NT$32.79 against US$1.00 as of December 31, 2024.

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("Taiwan-IFRS").

Revenue for the fourth quarter of 2024 was NT$5,399.6 million or US$164.7 million, a decrease of 11.0% from NT$6,068.0 million or US$185.1 million in the third quarter of 2024 and a decrease of 5.7% from NT$5,725.4 million or US$174.6 million for the same period in 2023. Revenue for the fiscal year ended December 31, 2024 was NT$22,695.9 million or US$692.2 million, an increase of 6.3% from NT$21,356.2 million or US$651.3 million for the fiscal year ended December 31, 2023.

Net non-operating income in the fourth quarter of 2024 was NT$154.6 million or US$4.7 million, compared to net non-operating expenses of NT$65.3 million or US$2.0 million in the third quarter of 2024, and net non-operating expenses of NT$137.0 million or US$4.2 million in the fourth quarter of 2023. Net non-operating income of the Company for the fiscal year ended December 31, 2024 was NT$373.1 million or US$11.4 million, compared to NT$359.8 million or US$11.0 million for the fiscal year ended December 31, 2023.

Net profit attributable to equity holders of the Company for the fourth quarter of 2024 was NT$232.2 million or US$7.1 million, and NT$0.32 or US$0.01 per basic common share, as compared to NT$299.4 million or US$9.1 million, and NT$0.41 or US$0.01 per basic common share in the third quarter of 2024. This compares to NT$482.0 million or US$14.7 million, and NT$0.66 or US$0.02 per basic common share in the fourth quarter of 2023.  Net earnings for the fourth quarter of 2024 were US$0.19 per basic ADS, compared to US$0.25 per basic ADS for the third quarter of 2024 and US$0.40 per basic ADS in the fourth quarter of 2023.

Net profit attributable to equity holders of the Company for the fiscal year ended December 31, 2024 was NT$1,420.0 million or US$43.3 million, and NT$1.95 or US$0.06 per basic common share, compared to net profit attributable to equity holders of the Company for the fiscal year ended December 31, 2023 was NT$1,893.4 million or US$57.7 million, and NT$2.60 or US$0.08 per basic common share. Net earnings for the fiscal year ended December 31, 2024 were US$1.19 per basic ADS, compared to US$1.59 per basic ADS for the fiscal year ended December 31, 2023.

Net free cash outflow for the fiscal year ended December 31, 2024 was NT$938.3 million or US$28.6 million, primarily in support of capacity additions in the Company's long-term growth segments, with a strong balance of cash and cash equivalents was NT$15,219.0 million or US$464.1 million.

Fourth Quarter and Full Year 2024 Investor Conference Call / Webcast Details
Date: Tuesday, February 25, 2025
Time: 3:00PM Taiwan (2:00AM New York)
Dial-In: +886-2-33961191
Password: 3119025 #
Webcast and Replay: https://www.chipmos.com/chinese/ir/info2.aspx
Replay: Starts approximately 2 hours after the live call ends
Language: Mandarin

Note: A transcript will be provided on the Company's website in English following the conference call to help ensure transparency, and to facilitate a better understanding of the Company's financial results and operating environment.

About ChipMOS TECHNOLOGIES INC.:
ChipMOS TECHNOLOGIES INC. ("ChipMOS" or the "Company") (Taiwan Stock Exchange: 8150 and Nasdaq: IMOS) (www.chipmos.com) is an industry leading provider of outsourced semiconductor assembly and test services. With advanced facilities in Hsinchu Science Park, Hsinchu Industrial Park and Southern Taiwan Science Park in Taiwan, ChipMOS is known for its track record of excellence and history of innovation. The Company provides end-to-end assembly and test services to leading fabless semiconductor companies, integrated device manufacturers and independent semiconductor foundries serving virtually all end markets worldwide.

Forward-Looking Statements 
This press release may contain certain forward-looking statements. These forward-looking statements may be identified by words such as 'believes,' 'expects,' 'anticipates,' 'projects,' 'intends,' 'should,' 'seeks,' 'estimates,' 'future' or similar expressions or by discussion of, among other things, strategies, goals, plans or intentions. These statements may include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Actual results may differ materially in the future from those reflected in forward-looking statements contained in this document, due to various factors. Further information regarding these risks, uncertainties and other factors are included in the Company's most recent Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") and in the Company's other filings with the SEC.

Contacts: In Taiwan Jesse Huang ChipMOS TECHNOLOGIES INC. +886-6-5052388 ext. 7715 IR@chipmos.com

In the U.S. David Pasquale Global IR Partners +1-914-337-8801 dpasquale@globalirpartners.com

View original content:https://www.prnewswire.com/news-releases/chipmos-reports-fourth-quarter-and-full-year-2024-results-302384230.html

SOURCE ChipMOS TECHNOLOGIES INC.

FAQ

What was ChipMOS (IMOS) revenue growth for full year 2024?

ChipMOS reported a 6.3% increase in full year 2024 revenue to NT$22,695.9 million (US$692.2 million) compared to NT$21,356.2 million in 2023.

How much is the IMOS dividend announced in February 2025?

ChipMOS authorized a dividend of NT$1.2 per common share, pending shareholder approval at the May 2025 AGM.

What is the size of the IMOS share repurchase program announced in February 2025?

ChipMOS announced a NT$350 million share repurchase program.

How did ChipMOS (IMOS) earnings per share change in 2024 compared to 2023?

ChipMOS reported net earnings of NT$1.95 per basic common share (US$1.19 per ADS) for 2024, down from NT$2.60 per basic common share (US$1.59 per ADS) in 2023.

What was ChipMOS (IMOS) gross margin for full year 2024?

ChipMOS reported a gross margin of 13.0% for full year 2024, compared to 16.6% in 2023.

How much cash does ChipMOS (IMOS) have as of December 31, 2024?

ChipMOS reported a cash and cash equivalents balance of NT$15,219.0 million (US$464.1 million) as of December 31, 2024.