Phison Electronics Corp. announced a reduction in its semi-annual dividend to NT$13.12 ($0.42) per share for the first half of 2024, payable on February 7, 2025.
Market analysts project Phison’s fourth-quarter revenue to hit NT$12.54 billion ($400 million), marking its lowest point for 2024. The memory controller maker faces headwinds from seasonal weakness in PC and smartphone markets, while maintaining its pricing strategy against aggressive competition.
The company’s bit shipments are expected to decline 9.7% quarter-over-quarter, contrary to earlier projections of a 1.1% increase. Gross margins may slip to 29.6% due to inventory write-downs, with earnings per share forecasted at NT$2.32 ($0.074), the lowest in six quarters.
Looking ahead, Phison’s first quarter of 2025 could see further pressure with revenue potentially dropping to NT$11.02 billion ($352 million) and margins compressed to 28.5%. However, analysts anticipate a rebound in the second quarter, supported by new enterprise-grade storage solutions for U.S. OEM clients and recovering consumer demand. The company is also positioned to benefit from the emergence of AI PCs and smartphones, alongside Windows 10 upgrade cycles.
