Alchip Technologies Announces Record Q1 Earnings
Guides for Record Q2 and Strong 2020
Taipei, Taiwan, May 27, 2020 – Alchip Technologies first quarter of 2020 achieved a record net income $5.79 million on record revenue of $50.49 million. The company also guided that it would set new records in Q2, despite the effects of the global pandemic.
Net earnings represent a 79% increase year-on-year over Q1 2019 net earnings of $3.23 million and a 25.2% increase quarter-on-quarter over Q4 2019 net earnings of $4.26 million. Revenue represents a 39.3% increase year-on-year over Q1 2019 revenue of $36.23 million and a quarter-on-quarter increase of 7.4% over Q4 2019 revenue of $47 million.
President and CEO Johnny Shen stated that the artificial intelligence market in the US, Middle East, and China remains strong but expects that current global travel restrictions would slow business in the U.S. market. Despite complications, he expects Al chip makers to gradually enter the 7nm production phase in late 2020.
Mr. Shen expects that for the rest of 2020 that the CPU market will remain the company’s major revenue contributor, assuming current levels 7nm foundry support. He also announced that multiple 7nm projects will enter the tape-out and production phase this year and that he expects only minor impact from the COVID-19 pandemic.
Alchip is traded on the Taiwan stock exchange. The company is extremely well respected in Japan, Israel, China and Taiwan for high performance ASIC design methodology, flexible business model, best-in-class IP portfolio and advanced packaging technology expertise.