Q1 2026 Chroma ATE Inc Earnings Call Transcript
Key Points
- Chroma Ate Inc (TPE:2360) achieved record-high net sales of NTD11.8 billion in the first quarter of 2026, marking a 73% year-over-year growth.
- The company's gross margin reached 63%, the second highest on a quarterly basis, with a 79% year-over-year increase in gross profit.
- Operating income grew by 122% year-over-year, reaching nearly NTD4.8 billion, which is 40% of the topline.
- The test instrument and ATS sections saw a remarkable increase of 105% quarter-over-quarter and 145% year-over-year, driven by AI server power applications.
- Chroma Ate Inc (TPE:2360) has strong demand from top AI and HPC companies, including NVIDIA, AMD, and Google, which are expected to contribute significantly to revenue this year.
- Operating expenses increased by 32% year-over-year, which could impact future profitability if not managed effectively.
- Free cash flow was negative NTD825 million due to investments in fixed income financial instruments.
- Inventory turnover is at 172 days, which might indicate potential inefficiencies in inventory management.
- The company did not provide specific guidance on the sustainability of the high growth rates in ATS revenue.
- There is uncertainty regarding the exact contribution of the CPO ramp-up to future revenues, as it was not included in the initial forecast.
Welcome everyone to Chroma's 2026 first quarter earnings conference call. Our line has been placed on mute to prevent background noise. (Operator instructions) I would like to introduce our IR Director, Jennifer Chien. Ms. Chien, please begin.
Okay. Thank you, Frank. Good afternoon, everyone. Welcome to Chroma first quarter 2026 earnings conference. My name is Jennifer, and I will be your host for today's section. Today's agenda includes our CFO Paul Ying will begin by presenting the financial results for the first quarter.
I will then provide an overview of the product mix for the first quarter too. Afterwards, we will open the floor to questions and answers. All presentation materials are available for download from the company website. With that, I will now turn the call over to our CFO Paul Ying.
Thank you, Jennifer. This is Paul Ying. I'm the CFO of Chroma ATE.
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