(March 21st, 2018 Taipei News)LSC(TWSE : 5305) board members approved the Company’s 2017 full year consolidated financial report in their board meeting today. Revenue for 2017 grew 10% compared to the same period last year, the average gross profit margin was 28% as compared to 27% in the previous year, operating profit also improved 27% on a YoY basis. Diodes Inc. impacted by the tax reform in the 4th quarter , the tax rate reduction simultaneously lowered its tax allowance for deferred asset and had to make up the tax difference. LSC also need to absorb about NTD180 million per its shareholding. However, EPS accumulated to NTD1.8 for 2017 was still a 28% growth on a YoY basis along with the improvement in core business. As a token of appreciation to LSC’s long term holding shareholders, the board members decided to distribute NTD1.6 per share, which is also an equivalent of 88.8% pay-out ratio.
The 6 inch foundry product was the only product that didn’t grow in revenue and profit in 2017. Modular system had the best performance among the 4 products and enjoyed a 19% and 1,750% YoY growth in revenue and profit respectively. Wafer and raw materials roaring price growth stacking up production cost, volatile foreign exchange rate and tax increase etc are some of the major challenges LSC needs to counter in 2018. LSC hopes to achieve growth in both revenue and profit along with the 5-8% semiconductor industry growth expected in year 2018.
The Board Members approved the consolidated financial results of year 2017 as of March 21st , 2018, details as below:
* Tax rate uses PBT as denominator