Silicon Integrated Systems, an investment firm backed by UMC, reported a surprising turnaround in its third-quarter financial results. Despite ongoing industry challenges, the company managed to transform a quarterly operating loss into a net profit, largely due to dividend income from its UMC holdings.
The company’s Q3 revenue surged to NT$213 million (US$6.7 million), marking a 324% increase from the previous quarter and a 163% year-over-year growth. While Silicon Systems still recorded an operating loss of NT$124 million (US$3.9 million), its net profit after tax reached NT$709 million (US$22.3 million), translating to earnings per share of NT$1.04 (US$0.033).
This financial uplift can be attributed to Silicon Systems’ substantial stake in UMC, comprising 266 million shares. The company estimates a NT$798 million (US$25.1 million) boost from UMC’s cash dividend distribution in July.
For the first three quarters, Silicon Systems reported cumulative revenue of NT$297 million (US$9.3 million), up 95.39% year-over-year. Despite improved gross margins, the company’s operating losses persisted, albeit narrowing. The year-to-date net profit stood at NT$515 million (US$16.2 million), with earnings per share at NT$0.78 (US$0.025).
