AI assistant
CHROMA — Call Transcript 2025
Mar 4, 2025
52029_rns_2025-03-04_c66ba6c6-3913-4db0-98d5-15b0c04fb664.pdf
Call Transcript
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2024.4Q Earnings Conference
Paul Ying, CFO Leo Huang, Chairman & CEO
24[th] February, 2025
1
Disclaimer
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This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “plan”, “forecast”, “project”, “predict”, “potential”, “continue”, “may”, “should”, “will”, and “would” or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements. The forward-looking statements in this presentation include, but are not limited to, growth rates for various markets estimated by third party sources, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forward-looking statements are no guarantee of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law.
This presentation and the information contained herein are the property of Chroma Ate Inc.
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2
Agenda
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• Corporate Profile • Financial Review • Operation Highlights • Q&A
3
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CORPORATE
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PROFILE
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4
Consolidated Sales Breakdown
Corporate Profile
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Consolidated Chroma Ate Sales Others Consolidated MAS Sales
- Chroma Group founded in 1984, a world leading own
brand and design of high precision test & measurement instruments, automated test systems, intelligent manufacturing systems and test & automation turnkey solutions provider. Businesses cover test and
measurement instruments and ATS for electronics, ICT and cleantech various industries.
-
Key success: Precision, Reliability, Innovation
-
Chroma group consolidated business units of Chroma Ate Inc. and Modular Assembly System (MAS).
-
2024 Consolidated Sales : NT$ 21.6 billion
-
2024 Net Income: NT$ 5.3 billion
-
Chroma Group total of 3,582 employees (as end of
December, 2024)
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21,604
21,431
1%
1%
4% 4%
18,676
1%
4%
14,779
3%
13,044 5%
3%
5%
92% 92% 95% 95% 95%
2020 2021 2022 2023 2024
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* For period of 2020 ~ 2022 to exclude the Chroma New Material Corp. due to business termination.
5
Financial Performance
Consolidated Sales & Gross Margin
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Parent Company Sales / Gross Margin / RD Expenses
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Sales Revenues Gross Margin
Consolidated Sales Gross Margin
R&D Expenses R&D Expenses in % of Sales Revenues
22,067 15,652
21,604
18,676 13,461
58% 59%
17,584 12,530
15,532 10,308
52% 55%
49% 53% 53% 54%
48% 52%
9,180
Chroma HQ Employees : 2,089 (R&D 37%)
13% 13%
12% 12% 12%
1,216 1,351 1,639 1,542 1,924
2020 2021 2022 2023 2024 2020 2021 2022 2023 2024
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6
Financial Performance
ROE
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25%
24%
22%
18%
15%
2020 2021 2022 2023 2024
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Dividend
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Basic EPS Cash dividend
Payout ratio
12.49
12.14
9.96 9.45
9.00
8.00
7.00
6.60
5.56
4.50
2020 2021 2022 2023 2024
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* Cash dividend for 2024 will be paid out after resolution of AGM
7
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FINANCIAL REVIEW
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8
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Year 2024.4Q Condensed Consolidated Income Statement
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Condensed Consolidated P&L 2024.4Q % 2024.3Q % QoQ % 2023.4Q % YoY %
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| 2024.4Q % |
2024.4Q % |
|
|---|---|---|
| (In Million NTD, except for EPS in NTD) | ||
| Net Sales | 6,039 100% |
5,632 100% 7% 5,025 100% 20% |
| Consolidated Sales of Testing Equipment Business | 5,755 95% |
5,170 92% 11% 4,913 98% 17% |
| Consolidated Sales of MAS | 211 4% |
384 7% (45%) 44 1% 380% |
| Others | 73 1% |
78 1% (6%) 68 1% 7% |
| Cost of Goods Sold | (2,432) (40%) |
(2,326) (41%) 5% (2,446) (49%) (1%) |
| Gross Profit | 3,607 60% |
3,306 59% 9% 2,579 51% 40% |
| Operating Expenses: General & Administration Research & Development |
(1,364) (23%) (684) (11%) |
(1,290) (23%) 6% (1,094) (22%) 25% (508) (9%) 35% (451) (9%) 52% |
| Operating Income | 1,559 26% |
1,508 27% 3% 1,034 20% 51% |
| Non-Operating Income (Expenses), net | 380 6% |
237 4% 60% (16) - n/a |
| Income (Loss) Before Tax Income Tax |
1,939 32% (403) (7%) |
1,745 31% 11% 1,018 20% 90% (295) (5%) 37% (193) (4%) 109% |
| Net Income | 1,536 25% |
1,450 26% 6% 825 16% 86% |
| Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests |
1,476 24% 60 1% |
1,426 25% 4% 799 16% 85% 24 1% 150% 26 - 131% |
| $ 1,536 25% |
$ 1,450 26% 6% $ 825 16% 86% |
|
| EPS (Basic) | $ 3.49 | $ 3.39 3% $ 1.89 85% |
| EPS (Diluted) | $ 3.45 | $ 3.36 3% $ 1.87 85% |
9
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Year 2024 Condensed Consolidated Income Statement
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Condensed Consolidated P&L 2024 % 2023 % YoY %
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| 2024 % |
2024 % |
|
|---|---|---|
| (In Million NTD, except for EPS in NTD) | ||
| Net Sales | 21,604 100% |
18,676 100% 16% |
| Consolidated Sales of Testing Equipment Business | 20,419 95% |
17,787 95% 15% |
| Consolidated Sales of MAS | 872 4% |
658 4% 33% |
| Others | 313 1% |
231 1% 35% |
| Cost of Goods Sold | (8,858) (41%) |
(7,919) (42%) 12% |
| Gross Profit | 12,746 59% |
10,757 58% 18% |
| Operating Expenses: General & Administration Research & Development |
(5,065) (23%) (2,199) (11%) |
(4,327) (23%) 17% (1,757) (10%) 25% |
| Operating Income | 5,482 25% |
4,673 25% 17% |
| Non-Operating Income (Expenses), net | 1,226 6% |
493 3% 149% |
| Income (Loss) Before Tax Income Tax |
6,708 31% (1,308) (6%) |
5,166 28% 30% (1,070) (6%) 22% |
| Net Income | 5,400 25% |
4,096 22% 32% |
| Net Income (Losses) Attributable To: Shareholders of the Parent Noncontrolling Interests |
5,264 24% 136 1% |
3,979 21% 32% 117 1% 16% |
| $ 5,400 25% |
$ 4,096 22% 32% |
|
| EPS (Basic) | $ 12.49 | $ 9.45 32% |
| EPS (Diluted) | $ 12.38 | $ 9.37 32% |
10
Balance Sheet Highlights & Financial Ratio
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| Consolidated (In Million NTD) Balance Sheet Highlights Cash & Short Term Investments Inventory Short Term Debt Long Term Debt Shareholders Equity |
2024. Dec 2023. Dec + / - % 5,040 4,794 5% 5,458 4,675 17% 1,417 2,136 - 34% 2,108 990 113% 25,450 22,517 13% |
|---|---|
| Total Assets | 37,308 33,482 11% |
| Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%) |
209 217 87 87 118 128 Net Cash Net Cash |
| ROE (%) | 22% 18% |
| ROA (%) | 15% 12% |
| Cash Position EBITDA Cash Flow from Operation |
2024 2023 YoY 7,528 5,973 26% 4,784 3,408 40% |
| Free Cash Flow | 2,893 2,014 44% |
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All ROE + ROA has been annualized.
Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities)
11
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OPERATION
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HIGHLIGHT
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12
2024.4Q & Annual Product Mix and Consolidated Sales Breakdown
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| (Unit: Million NTD) | 2024.4Q % QoQ YoY |
2024 % YoY 2023 % |
|
|---|---|---|---|
| Test Instruments & Automatic Testing System (ATS) |
1,687 40% (3%) 12% |
6,825 44% (16%) 8,078 64% |
|
| Semiconductor / Photonics Test Solutions | 2,086 50% 14% 141% |
6,974 45% 135% 2,963 24% |
|
| Turnkey Solutions | 146 3% 39% (15%) |
685 4% 51% 454 4% |
|
| Service & Others | 275 7% (15%) (25%) |
1,168 7% 13% 1,035 8% |
|
| Total of Parent Company Sales | 4,195 100% 5% 45% |
15,652 100% 25% 12,530 100% |
|
| + Sales from Overseas Operations & Related Subsidiaries |
1,560 31% (22%) |
4,767 (9%) 5,257 |
|
| Chroma Consolidated Testing Equipment Business |
5,755 95% 11% 17% |
20,419 95% 15% 17,787 95% |
|
| MAS Other Subsidiaries |
211 4% (45%) 380% 73 1% (6%) 7% |
872 4% 33% 658 4% 313 1% 35% 231 1% |
|
| Consolidated Sales | 6,039 100% 7% 20% |
21,604 100% 16% 18,676 100% |
|
13
Year 2025 Guidance
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In year 2024, Chroma total consolidated sales revenues of continuously operating businesses hit record high, reached 21.6 billion NTD, which presented a growth of 16% YoY. The Parent Company sales also hit record high reached 15.6 billion, presented a growth of 25% YoY. Semiconductor sector was the major growth driver, presented an increase of 135% YoY.
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Year 2025 Business Outlook:
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✓ The growth driver in 2025 will be mainly coming from semiconductor / photonics sector.
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✓ Qualified Metrology equipment for Advanced Packaging will start generating meaningful sales
-
revenues from 2025.
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✓ AI / HPC, new Auto / Gaming chips and capacity ramp from ASIC makers are key drivers for SLT demand.
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✓ The Test Instruments & ATS for power testing solutions start to bottom up.
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✓ New designed Turnkey Solution for AR glasses has been launched from second half of last year,
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and will continue to deliver in 2025.
14
Green Revenue - Parent
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2023
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2024
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51.7% 48.3%
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Green Revenue General
Note: Revenues are classified according to FTSE Russell’s Green Revenues Classification System (GRCS).
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Technology & Solution Milestones High Precision Test Solutions
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Semiconductor Test Solutions
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3650-S2
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3380 MXADO
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•
768pin
• 12 slots
Designed for High Quality Audio Testing
•
15kVA • 8 WG and 8 WD channels
•
Floating •
6Vpp audioband
• LB electronics •
High-performance bandwidth: 100kHz
•
IC: SiC/Power/logic
(WG) and 22kHz (WD)
Applications:
•
Wired/wireless/Bluetooth audio devices,
headphones, speakers
2023 2024 2025
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2025
3650-S2 HTMU
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3680 HDRF2
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- Internally Integrated
Advanced Performance for Timing Test
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One-touch engagement
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4 Vector Signal Transceivers
-
16 channels
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32 RF ports
-
High precision with nSeclevel accuracy
-
6Ghz Software Defined Radio
-
200Mhz bandwidth
-
Supports multiple testing modes
-
Applications:
-
-
Supports various protocols: Bluetooth
-
5.2, Wi-Fi 6, LoRa, GPS
-
PMIC, industrial control chips, logic chips
IC: SiC / Power / Logic / Wireless
Semiconductor Measurement Solutions
7980
2D/3D Metrology Measurement System
7981
2D/3D Metrology Measurement System
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2D/3D Metrology
-
XY / Z Resolution: 30nm / 0.05nm
-
Sensor: BLiS Technology
-
Light Source: Multiple Light Sources
-
Applications:
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✓ Probe Mark
-
✓ 3D Surface Profile
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2D/3D Metrology
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OVL
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-
XY / Z Resolution: 30nm / 0.05nm
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Sensor: BLiS Technology
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Light Source: Multiple Light Sources
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Applications:
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✓ RDL: ≧ 2 μm, AR3
-
✓ TSV: ≧ 5 μm, AR15
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✓ OVL ≦ 0.2 μm
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✓ 8”, 12” Si Wafers
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2025
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2023 2024 2025
Advanced Packaging: InFO, CoWoS, 3D IC
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BLiS: Broadband Light integrated System Muti-Sensors with different functions are integrated.
IC System Level Test Solutions
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Temperature-forcing Systems
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-
-40℃~ +150℃ @Tc
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• Up to 1,200W power dissipation
-
2021 2023
-
-70℃~ +150℃ @Tc
-
• Up to 1,000W power dissipation
2024
-
-40℃~ +150℃ @Tc
-
• Up to 2,900W power dissipation 2025
Hybrid Tri-temp Test Handler ENG Single Site Test Module
FT & SLT Hybrid Test System
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-
3x3~120x120mm
-
-70 ~ +150℃ @Tc, up to 1.2kw dissipation
-
500 kgf contact
-
TSD (Tj) available
Model 3110 Gen2
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-
3x3~120x120mm
-
-40 ~ +150℃ @Tc, up to 1.8kw dissipation
-
• 500 kgf contact
-
TSD (Tj) available
Model 3210
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-
5x5~120x120mm
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4~24 sites
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-40 ~ +150℃ @Tc, up to 1.5kw/site dissipation
-
500 kgf/site contact
-
TSD (Tj) available
-
Warpage detection
-
OHT integration
Model 3200
Advanced packaging of AI/HPC, automotive, IoT, cloud, network and data center chips
Photonics Test/AOI Solutions – Quartz Crystal Wafer
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Test requirement trend:
-
➢ Higher frequency
-
➢ Thinner die thickness
-
➢ Smaller die size and pad pitch
Frequency: <220MHz Die thickness: >7.6µm Die size: >0.7mmX0.6mm
2023 2024
Crystal Wafer Probing System
In-process Wafer Inspection System
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Model 58216 (250B VNA) Frequency: 220MHz Min. die pitch: 0.4mm
Model 7945 Depth of focus at 2X mag.: 90µm Min. die size: 0.075mmX0.075mm
Frequency: 300MHz Die thickness: 5.5µm Die size: 0.5mmX0.5mm
2025
Crystal Wafer Frequency Sorter
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Model 58217 Frequency :300 MHz Hardware Bin Number: 10 bins
Consumer/Automotive Sensing, LiDAR
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SiPh (Silicon Photonics) Active Components Burn-In Solutions
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Active SiPh Device LASER
Input coupler
Burn-In MICRO-
RING
Optical modulator
RESONATOR
PHOTODIODE
Optical waveguide
Couplers
Photonic crystal
Optical fiber
Reliability Test Series
DUT: SiPh Device
58604 Series 58606 Series
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Reliability Test Series
SiPh Electrical Test
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Model Optical & + 58604C Thermal Rack
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-
° °
-
• 125 C / 200 C
-
°
-
• 200 C
-
± 7 V / ± 7.5 V
-
± 80 V
-
± 500 mA
-
± 2 mA
-
1,792 channels
-
1,792 channels
-
1 nA meas. Res.
Light-feeding with Laser Source Module
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Co-Packaged Optics (CPO) Assembly & Sorting Solution
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OUTPUT
Optical Engines
Switch
ASIC
Rack
ASIC
CPO modules
deployed in switches
ASIC
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INPUT
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Optical Engines Fiber Array Unit
➔ ➔ ➔
FAU & EPIC Alignment Gel Dispensing UV Curing Binning
ASIC
Optical Engines
Model 58623
Photonics IC Assembly and Sorting System
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- Auto FAU miniMT plug in/out
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ASIC
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-
Auto Passive + Active alignment
-
Auto gel dispensing + UV curing
-
Auto Binning
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Data Center
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- Tier-1 High throughput solution in the market
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Technology & Solution Milestones High Power Test Solutions
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Power Electronics Test Solutions
Regenerative AC Load
Regenerative DC Load
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Model 63800R Series
-
Programmable AC Load with energy regen
-
High Power Density: 15kW/3UH, Eff:90%
-
9kW-15kW, 350VLN
Model 63700 Series
-
Programmable DC Load with energy regen
-
High Power Density: 18kW/3UH, Eff:93%
-
18kW, 600/1200/1800V
2022
2023
2024 2025
Regenerative Grid Simulator
Bidirectional DC Power Supply
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Model 61800-100HV
-
High power AC source with energy regen
-
Optional regen AC Load
-
Parallel up to 1MVA
-
105kVA, 500VLN-800VLN
Model 62000D-HL Series
-
8x Wide Range Output Dual Output Range ‒ High range: 2000V/480A/360kW ‒ Low range: 650V/1440A/360kW
-
High power density
-
Battery & Fuel Cell & Solar array simulation
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Server PSU, BBU Testing & EV Power Electronics, Green Energy (PV, ESS, PCS, Battery/Fuel Cell), Battery Storage
Battery Cell Test Solutions
High Power xEV Cell Test Solution
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High Power
xEV Cell Test Solution
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Battery Reliability Test System Model 17010H
Battery Reliability Test System Model 17010H
- 6V, 300A,
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• 6V, 200A
• 600A (peak current) • 300A (peak current)
2023 2024 2025
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Auxiliary Measurement Solution
DVA Cell Test Solution
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Multi-channel voltage/temperature
Data Logger Model A172013/A172014
Ultra-high precision CDC
Prog. Charge/Discharge Tester Model 17208M-5-12C
- 5V, 12A
Battery Cell/Lithium-ion Capacitor/Super Capacitor
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Battery Module/Pack Test Solutions
Regenerative Battery Pack Test System
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Model 17020E
-
10kW, 60V
-
• 10kW, 100V • 10kW, 200V
Applications:
-
E-Scooter battery pack
-
• E-vehicle battery module
-
2022 2024 2025
Regenerative Battery Pack Test System
Regenerative Battery Pack Test System
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Model 17040
-
300kW 1000V 750A
-
360kW 1000V 900A
-
500kW 1000V 1200A
-
600kW 1000V 1500A
Applications:
- E-vehicle battery pack
Model 17040E
-
200kW 1700V 400A
-
200kW 850V 600A
Applications:
-
E-vehicle battery pack
-
ESS battery pack
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- ESS battery pack
Battery Module/ Pack
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Turnkey Solution NED Test and Automation Turnkey Solution
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AR Glass & Automation Solutions
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+
Light Engine Sub Module
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Waveguide
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Waveguide/Eyepiece Projector Precision Assembly/
IQ Test System IQ Test System Testing System
Model 5742-F Model 5742-B Model 5742-A
• OMM: PA Alignment • Auto Contact • OMM: PA/ AA Alignment
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-
Projector: Light Source Simulation
-
OMM: BS AA Alignment
-
Precision Assembly
-
Auto Rx lens Changer
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Sub Module Sub Module
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Sub Module
IQ Test System
Model 5742-C
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-
OMM: PA Alignment
-
Projector: Light Source Simulation
-
Auto Rx lens Changer
Note: All the above equipment apply Chroma Colorimeter to proceed Image Quality Test
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Thank You
Copyright © 2023 Chroma ATE Inc. All rights reserved.