Monthly Sales Report for September 2024

Issue on: 2024/10/07

ELAN Monthly Sales Report – September 2024

ELAN Microelectronics Corp. (the Company), a leading touch controller solution provider in global NB market, announced its consolidated net sales of NT$ 1,115 million for September 2024, down 6.23% MoM and 7.65% YoY. 3Q24 revenue reached NT$3,403 million, increase 7.97% QoQ, hitting the high end of the 3Q outlook provided at the investor conference. We continue to deepen technological expertise, expand product mix, and increase the proportion of high-end products. We keep developing various features to meet the needs from customers in AI PC era. We remain optimistic about the innovative development of AI PCs and are actively positioning in AI market, further generating the greatest value for brand customers and the company.

The sales breakdown in September 2024: Touchpad Module 48%, Touchscreen Controller 20%, Fingerprint Sensor 11%, Pointstick (PST) 15%, Microcontroller 3%, and 3% from the sales of affiliates. Touch applications, including biometric applications, accounted for 79% and non-touch applications accounted for 21%.

The market demand in 3Q that we have received so far has exceeded initial expectations. Although NB market is primarily impacted by macroeconomics, which led to a slower than expected recovery of consumer demand. However, NB related orders continue to grow, with some high margin products have reached a better performance than we anticipated. The company is confident in AI PC trend with various models launch onto the market, which will also significantly benefit the company in the future. With the high computational power of NPU combined with CPU, GPU and edge computing, the growth momentum of entire supply chain will booth, highly improving work efficiency for enterprises and users, picturing a brand new NB market.

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In the NB market in 2024, general market research institutions view the market positively as a gradual growth trend. With a fully prepared AI PC supply chain, most laptops available in the market are expected to be equipped with AI capabilities, growth in 2025 is expected to be more significant. We analyze the information from supply chain, AI PC is expected to come in 4Q24 or 1H25 at the earliest and contribute a significant growth. At the same time, integrating AI-functional hardware chips and software into NB will change the long-standing traditional ecology of the NB market to improve the individuals’ or enterprises’ productivity demands which are the focuses of the NB industry chain in 2024.

ELAN will continue to focus on "content value increase", through existing AI technology to integrate AI functions, algorithms and data to provide better total solutions, which will raise our chips or modules prices to drive up the operating efficiency.

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