Taiwanese transmission interface chip manufacturer Genesys Logic reported a net profit of NT$28 million in August, a 22% increase year-over-year, with earnings per share (EPS) of NT$0.31. However, the company’s third-quarter EPS is forecasted to hit just 1.3 yuan, achieving only 56% of earlier expectations, according to legal analysts.
Genesys Logic’s performance was impacted by foreign exchange losses due to the appreciation of the Taiwan dollar, despite a rebound in gross profit margins, which climbed to 43-44% thanks to declining inventory losses. The company’s main business includes designing USB transmission and card reader chips, and it has recently expanded into REDRIVER products used in devices like laptops, game consoles, and motherboards.
Revenues surged in August, returning to the 300 million yuan ($9.3 million) mark, fueled by new customer projects and product launches. Analysts expect continued momentum as customers stock up on components for new game consoles, with third-quarter revenue projected to hit 900 million yuan.
Genesys Logic is also focusing on the development of new USB technologies, with mass production of USB 3.2 Gen 1 and Gen 2 underway and USB 4 products expected by 2025, which could further boost margins in the future.
