Phison Electronics Corp (ROCO:8299)

Q2 2026 Phison Electronics Corp Earnings Call Transcript

Aug 13, 2026 / 09:00 AM GMT

Release Date Price: NT$2280 (+3.17%)

Transcript

Key Points

Positve

Record-high Q2 revenue of NT$67.8 billion and EPS of NT$118, with first-half revenue exceeding NT$108 billion.
AI ecosystem solutions now represent 38% of total business, growing 68% QoQ, driven by enterprise and AI networking design wins.
Gross margin reached a record 65.3% in Q2, up 7.5 percentage points YoY, reflecting strong product mix and engineering value.
Gained market share in mobile and PC OEM controllers despite declining unit shipments, supported by heavy R&D investment.
Expanding into new AI data platform business with commercial shipments to banks, hospitals, and SMEs, and plans to scale globally.
Strong cash flow and balance sheet, with no debt after repaying bank loans, and inventory levels considered adequate for near-term demand.
New design wins in enterprise boot drives and main drives, including six AI networking programs and two new OEM wins.
Adaptive technology validated through POCs with partners like MINATECH, enabling DRAM reduction in AI inference.
Company policy to maintain conservative inventory write-downs ensures clean inventory and future profitability.
Established corporate VC to invest in ISVs, fostering ecosystem growth for the AI data platform.

Negative

NAND supply remains extremely tight, with management indicating supply will be insufficient to meet demand through end of 2026 and into 2027.
Inventory levels are considered too low relative to forecasted demand, posing a risk of not fulfilling customer orders.
Consumer and retail business is declining, with retail expected to remain below 5% of revenue until 2028.
R&D investment increased significantly (6.5x YoY), pressuring near-term profitability despite strong earnings.
Dividend payout ratio reduced to 2.87% for the half-year, disappointing shareholders expecting higher returns.
Gross margin may face pressure as NAND prices continue to rise, potentially leading to margin normalization.
AI data platform revenue is still small and not yet material, with significant investment required before meaningful contribution.
Dependence on NAND suppliers for allocation, with limited ability to secure additional supply despite high demand.
Potential dilution from convertible bond issuance, though management notes it is low single-digit percentage.
Management acknowledges that if NAND prices keep rising, gross margin cannot remain linear, requiring new product innovations to offset.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

8299.TWO - Phison Electronics Corp
Q2 2026 Phison Electronics Corp Earnings Call
Aug 13, 2026 / 09:00AM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for joining us today for Fisen second quarter earnings call. My name is Estoria Chen and I am semi analyst from Sinopec COST.

Today we are very honored to have KS Pras, the CEO of Fisen.

In today's call, KS will first provide some updates on the Fisen second quarter results and business highlights and then market outlook. And after that, we will open the floor for the questions.

As a reminder, if you have any questions during the call, you can write down the questions in the chat box, and we will raise the questions for you later.

And now I would like to turn over to KS for the comments.

Thank you, KS.

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