Asustek Computer Inc Regs (ASUUY) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, welcome to the ACES Q1 2025 Online Investor Conference. Today's conference will be held by ACES Computer Co-CEO, Samsung Hu, and CFO Nick Wu. The conference will be divided into two parts. In the first part, CFO Nick Wu will start by outlining our quarter financial results. Next, our CEO will go over the operational strategy and business outlook. For the second part, we will be conducting a Q&A. You are welcome to raise any questions you might have in the panel on the left side of the webpage. Questions will be collected and answered. Let us start with the presentation from CFO Nick Wu. Dear investors, good afternoon. Please refer to slide 5. This page shows ASUS consolidated brand income statement for Q1 2025. First, our Q1 revenue came in at $135.2 billion, up 18% year-over-year Revenue this quarter exceeded our internal expectations This was driven primarily by several factors The first being growth in the PC and laptop shipment growth Secondly, we also saw higher server shipments So both of these contributed to the stronger than expected performance. Next, please refer to our operating profit, which was 11.5 billion. This represents a 147% increase year-over-year. For the operating profit, there were two key factors worth noting. First, we saw improvements in product growth margin. particularly in our component business thanks to the introduction of a new gaming platform this has lifted margins for our graphics cards and motherboards and as the platform rolls all to our gaming laptops We expect that the upward trend in gross margin may persist into quarter two. So that's the operating margin side. On the operating expenses side, we saw the benefit of the reversal of a previously provisioned bad debt. Specifically in Q4 last year, we set aside $5.3 billion ...