DISCO Corporation has announced its financial results for the first quarter of FY2024, showcasing a strong performance driven by significant demand for integrated circuit (IC) processing equipment, particularly in the generative AI sector. The company reported net sales of ¥82.8 billion, a substantial 53.4% increase compared to the same period last year. This growth was primarily attributed to increased equipment shipments and favorable exchange rates.
The gross profit margin improved to 69.7%, up from 65.2% in the previous year, highlighting the company’s ability to manage costs effectively while enhancing product value. Despite a slight increase in selling, general, and administrative expenses (SG&A) due to higher personnel and R&D costs, DISCO’s operating income surged by 96.7% year-over-year, reaching ¥33.4 billion.
Regionally, Asia remains a significant market, contributing to 69% of total sales, with notable increases in shipments to Taiwan and South Korea. North America also showed a strong performance, accounting for 15% of sales.
DISCO’s balance sheet remains robust, with total assets of ¥558.9 billion, reflecting an increase in inventory assets and cash deposits. The company’s equity ratio stood at a healthy 72.6%. The earnings forecast for the second quarter anticipates continued strong performance, with projected net sales of ¥85.6 billion.
The company’s strategic focus on high-value IC processing tools and equipment for AI applications positions it well to capitalize on the growing demand in the semiconductor industry. DISCO continues to prioritize R&D, with an anticipated investment of ¥30 billion in FY2024, ensuring its technological edge in a competitive market.
