Asustek Computer Inc Regs (ASUUY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, welcome to the ACES Q2 2025 Online Investor Conference. Today's conference will be held by ACES Tech Computer Co-CEO, A.Y. Xu, and Samson Hu, alongside CFO Nick Wu. The conference will be divided into two parts. In the first part, CFO Nick Wu will start by outlining the Q2 financial results. Next, our co-CEOs will go over the operational strategies and business outlooks. For the second part, we will be conducting a QA session. 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 by our host. Let us start with the presentation from CFO, Mr. Nick Wu. All right, thank you everyone. Please turn to page five of the slide. This shows ASUS's consolidated income statement for quarter two 2025. Revenue for the quarter reached $174 billion, up 29% quarter-on-quarter and 28% year-on-year. This marks a new single-quarter high for ASUS brand revenue. the main growth drivers came from strong gains in gaming products as well as ai related products such as ai servers both delivered revenue growth exceeding 40 percent year on year The gross profit in Q2 was $21.5 billion with a gross margin of 12.4%. Operating income came in at $5.96 billion for an operating margin of 3.4%. profitability for the quarter was affected by two main factors tariffs and secondly the new taiwanese dollar exchange rate fluctuations now in response to tariff policy changes asus had reallocated supply chain and made capital investments during the quarter which we estimate reduce the operating margin of the company by about 0.5 percentage points. As for FX, in early May, the US dollar to Taiwanese dollar exchange rate experienced a sharp swing, which will have an favorable impact on product growth margins for roughly ...