Reflecting the seasonal ramp of smartphone production, WIN Semiconductors reported record revenue of NT$4,404 million (approximately $146 million) in fiscal Q3 (ending September 30), a gain of 15 percent compared to the prior quarter and 24 percent compared to the same quarter one year ago. Year-to-date revenue was NT$11,506 million ($381 million), 10 percent above the same period in 2016.

WIN Semiconductors revenue history
WIN Semiconductors revenue history.

Revenue from the mobile phone market grew to between 40 and 45 percent of the total, up from last quarter’s 35 to 40 percent range. The Wi-Fi market contributed 30 to 35 percent of revenue, followed by infrastructure applications, at 15 to 20 percent. Revenue from all other markets, including a newly ramping GaAs-based vertical cavity surface-emitting laser (VCSEL) for 3D sensing, contributed approximately 10 percent.

Earnings per share (EPS) in Q3 was NT$2.93, compared to NT$1.85 in Q2. Fab utilization was approximately 95 percent, up from 90 percent in Q2, which contributed to a 0.6 point sequential gain in gross margin, to 37.8 percent. Operating margin was 27.9 percent, a sequential improvement of 1.8 points.

Capital expenditures during the quarter equaled NT$772 million (approximately $26 million) and NT$2,525 million (approximately $84 million) for the first three quarters of the fiscal year. WIN ended the quarter with cash and equivalents of NT$2,841 million ($94 million).

During Q4, WIN expects revenue to grow in the low-teen percentage sequentially. Revenue from VCSEL production, which began ramping in July, is forecast to grow at a double-digit rate.

Formed in 1999, WIN is the industry’s largest “pure play” compound semiconductor foundry.