ASUSTeK Computer Inc. (ASUUY) Q2 2023 Earnings Call Transcript


ASUSTeK Computer Inc. (OTCPK:ASUUY) Q2 2023 Earnings Conference Call August 11, 2023 4:00 AM ET

Company Participants

Nick Wu – Chief Financial Officer

S.Y. Hsu – Co-Chief Executive Officer

Samson Hu – Co-Chief Executive Officer

Operator

Hello. Welcome to ASUS’ Online Investor Conference for the Second Quarter of 2023.

Today’s conference will be hosted by Mr. S.Y. Hsu, Samson Hu, and our CFO, Nick Wu. First, our CFO, Nick Wu, will talk about the financial results for the quarter. And then, our two co-CEOs will talk about our strategy and outlook. This will be followed by a Q&A session. [Operator Instruction]

Now let’s welcome Mr. Nick Wu, to report on our financial results.

Nick Wu

Thank you. Please look to Slide 5. This is our brand income statement for the second quarter of 2023. As you can see, our net revenue was NT$107 billion for the quarter, a quarter-over-quarter growth of 5% and a year-over-year decline of 7%. We earned a profit of NT$1.2 billion, which is a return to profit after two quarters of losses. The net profit is NT$2.59 billion and the EPS is [NT$3.5] (ph) per share.

As you can see at the bottom of the slide, we are disclosing two unique items, which is sales allowances and inventory allowances. Due to some adjustments in sales channels and inventory, we had an increase in sales allowance from minus 16% in the first quarter to minus 17.7% in the second quarter. But due to successful inventory management, the inventory allowance returned to positive to positive 2.6%, a growth of 1.7 percentage points compared to the first quarter. So these two items, sales allowance and inventory allowance, approximately canceled each other out in terms of quarter-over-quarter changes.

In fact, our gross margin for this quarter grew from 8.1% to 12.5%, and our



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