DFI (2397), the world leading brand in embedded motherboards and industrial computers (IPC), released its consolidated financial statements for Q1 on May 6. The company's consolidated revenue was NT$1.906 billion, down 25% YoY, mainly due to the conservative number of orders from European and American customers. However, thanks to increasing demand in the Japanese market and the expansion of the portfolio of high-margin products, the gross profit margin increased in Q1 compared to the same period last year. The gross profit margin in the company's embedded business stabilized at 30%.
The financial analysis organization S&P Global and Hamburg Commercial Bank reported on April 24 that the PMI for the manufacturing sector in the eurozone fell from 46.1 to 45.6 in April, a four-month low and still below the contraction line of 50. The US PMI for the manufacturing sector also fell to 49.9 from 51.9 in March. However, the pace of contraction in Japan's manufacturing sector has slowed.
Regarding this issue, DFI President Alexander Su explained that in Q1, DFI not only faced fewer working days during the Lunar New Year, but also a slow recovery in manufacturing demand in major economies around the world, with customers in Europe and the US purchasing goods conservatively, resulting in an off-season in terms of consolidated revenue and profitability. However, due to increasing demand in the Japanese market and the optimization of the profit structure, the gross profit margin increased compared to the same period last year. The gross profit margin in the company's embedded business continued to exceed the target of 30% and increased by three percentage points YoY due to operational adjustments.
In terms of order intake, DFI will continue to optimize operational efficiency and monitor the upward trend of the overall book-to-bill ratio in the short term as new deals emerge in various regions around the globe. In the medium to long term, the growth of DFI will continue to be driven by the unchanged demand in areas such as smart automation, smart healthcare, new energy applications, and smart transportation.
DFI's consolidated revenue in Q1 was NT$1.906 billion, down 25% YoY. Gross operating profit was NT$525 million, representing a YoY decrease of 23%. Earnings per share was NT$0.45. Gross profit margin was 28% higher than in the same period of the previous year, while the operating profit margin and net profit after tax attributable to the parent company fell by double digits compared to the same period last year.