TAIPEI (Taiwan News) — Compal Electronics said Thursday its Q2 net profit rose more than fivefold year-on-year to NT$3.13 billion (US$97.41 million) as higher financial asset gains and stronger non-PC business boosted results.
Profit attributable to owners of the parent company rose 59% from the previous quarter, while earnings per share reached NT$0.73, per CNA. Non-PC products accounted for about 34% of revenue, up from 30% a year earlier, putting the company on track to reach its goal of 40% this year.
Compal’s gross margin fell to 4.6% from 5.3% in Q1 and 5.9% a year earlier, mainly because of higher component costs, including memory. Compal CFO Wang Cheng-chiang (王正強) said higher selling prices helped offset some of the impact, but the larger revenue base diluted margins.
Notebook shipments fell 13% year-on-year in the second quarter because of component shortages and higher prices, Compal President and CEO Anthony Peter Bonadero said. However, he said customers favored higher-end and AI PC models, lifting average selling prices and helping PC revenue rise 20% from the previous quarter and 23% from a year earlier.
Compal’s non-PC revenue rose 52% year-on-year in the second quarter, driven mainly by servers, with AI servers accounting for about 70% of total server revenue. The company is also adding NeoCloud customers, or emerging cloud service providers, as it expands its server business.
Compal’s new AI server manufacturing center in Daxi, Taoyuan, began operations this week and will now enter customer certification, with revenue contributions expected from Q4. The company reported Q2 revenue of NT$238.29 billion, up 18.38% from the previous quarter and 32.06% from a year earlier, per Anue.
