Server ODM Wiwynn has reported net profits of nearly NT$3.3 billion (US$107.5 million) on revenue of NT$74.23 billion for the first quarter of 2023, both of which set new records for the same period in previous years. EPS for the quarter came to NT$18.86.
Despite a less optimistic outlook for the server market, as well as challenging macroeconomic conditions that resulted in currency exchange losses and rising interest rates, Wiwynn achieved its best first quarter ever, according to the Taiwan-based company.
Wiwynn's inventory days have fallen to a nearly two-year low, as the supply chain gradually returns to normalcy. In the first quarter, the company's gross margin and operating margin both reached new highs for the same period in previous years, reaching 8.3% and 6%, respectively.
Wiwynn disclosed its cumulative 2023 revenue through April increased 30.9% on year to NT$92.41 billion. April revenue came to NT$18.18 billion, falling 47.8% on month and 8.7% from a year earlier, however.
After reaching a high point at the end of the March quarter, Wiwynn's shipment momentum stalled significantly in April, the server ODM indicated. Given the economy's prolonged decline, Wiwynn stated it will continue to constantly monitor and make rapid changes to deal with the consequence and uncertainty produced by it. Wiwynn believes that the long-term demand outlook for the cloud industry and AI servers remains promising, therefore it will continue to invest in and deepen manufacturing technologies associated with data center servers.
In addition, Wiwynn's board of directors has approved plans to invest a total of US$40 million in generating additional paid-in capital for its production subsidiary in Mexico, where the company plans to expand its existing site.
Wiwynn disclosed previously plans to expand production capacity by 50% in 2024, which will mainly take place in Malaysia, Mexico, and Taiwan.
Article translated by Jessie Shen
