Industrial computing solution provider Advantech expects second-quarter 2022 consolidated revenues to decrease 1.4-5.0% sequentially due to impact of COVID lockdowns in China, according to company CFO Eric Chen.
The lockdowns have impacted production at factories in China and related logistics, and 8-10% of shipments scheduled for second-quarter 2022 have to be deferred, Chen indicated, adding that the orders have not been canceled.
Advantech expects the lockdown in Kunshan, eastern China, to be gradually lifted and thus 60% of Advantech's production there will be resumed in mid-May and 100% by the end of the month, Chen noted.
Industrial IoT accounted for 31.0% of first-quarter 2022 consolidated revenues of NT$16.120 billion (US$556 million), embedded IoT 23.4%, applied computing 14.0%, cloud computing IoT 9.3%, service IoT 11.1%, and Advantech Service Plus 11.2%.
North America accounted for 28.7% of the revenues, Europe 17.1%, China 23.4%, Japan and South Korea 9.0%, Taiwan 6.1%, other Asian and emerging markets 11.4%, and others 4.3%.
For second-quarter 2022 outlook, Advantech forecasts consolidated revenues of US$530-550 million, gross margin of 36.5-38.5%, and operating profit margin of 16.0-18.0%.
Advantech: Financial results, 1Q22 (NT$b) | |||
!Q22 | Q/Q | Y/Y | |
Consolidated revenues | 16.120 | 2.39% | 22.48% |
Gross margin | 38.20% | 0.09pp | (1.38pp) |
Operating profit | 3.015 | 11.37% | 31.82% |
Net profit | 2.572 | 13.16% | 34.46% |
Net EPS (NT$) | 3.32 | ||
Source: Company, compiled by DIGITIMES, May 2022
