Realtek Semiconductor Corp. reported first-quarter earnings per share of NT$9.28 ($0.30), hitting a historic high for the period as customers replenished inventories and the company optimized its product mix.
The Taiwanese networking chip designer saw revenue surge 36.7% year-on-year to NT$35.02 billion ($1.14 billion) in the quarter, with gross margins climbing to 51.6%, up 3.3 percentage points from the previous quarter. Operating margin rose to 14% from 10.9% in Q4.
Executives credited the profit jump to increased shipments of high-end networking chips and automotive products, alongside effective expense management. Inventory turnover improved significantly, decreasing to 75 days from 94 days in the previous quarter.
Looking ahead, Realtek expects continued momentum in Ethernet controllers and audio codecs during the second quarter as some customers front-load orders amid tariff concerns. However, Deputy General Manager Huang Yi-wei struck a cautious tone regarding full-year prospects, citing increasing trade policy uncertainties.
The firm remains focused on diversifying its product portfolio across PC, communications, and automotive applications, with particularly strong positioning in AI and enterprise networking markets. PC segment shipments grew 4.9% year-on-year in Q1, with management expressing optimism about growth potential supported by Windows 11 adoption and edge AI implementations.
