Ardentec (3264-TW) held an online investors conference today on August 2nd. In 2H19, Ardentec said that the company has entered its peak season in 3Q19 and its revenue/earnings is expected to stay flat as it was historically. However, due to the great uncertainties in the market, further observation is needed as to the direction or any changes. But, the company still holds positive outlook toward RF demand boosted by the development of 5G.
Ardentec's capacity utilization rate in 1Q19 was less than 80%, and it rebounded to about 85% in 2Q19. The company told that although client’s demand may continue to be affected by inventory adjustment, it seems that its 3Q19 revenue/earnings is expected to stay flat as it was in the peak season historically. Further observation is needed as to the direction or any changes.
Ardentec has acquired the RF testing company Giga Solution in 2016. Recently, catalyzed by the development of 5G, the demand for RF IC has increased, leading its 1H19 RF IC revenue proportion to increase from 13.3% to 16.5% .
The company told that 5G development has just started. For now, many existing 4G projects still need more high-tech packaging and testing solutions. There are few projects of 5G in the progress for now. Since RF is needed in the development of Internet of Things(IoT), further upside of RF market is expected.