Senao Networks' May Revenue Down 15% MoM Due to Customer Product Revision, Compensation Secured

(Central News Agency, Taipei, June 5) Senao Networks, a manufacturer of low-earth orbit (LEO) satellite and millimeter-wave communication components, announced its May revenue today at NT$296 million, a 15% decrease from April. The company stated that the month-on-month decline in May revenue was primarily due to a customer-side product revision and adjustment, which led to a temporary suspension of shipments for some products, impacting the monthly revenue performance.

However, Senao Networks emphasized that this shipment adjustment was caused by customer-side factors. The customer paid compensation for the order cancellation according to the relevant agreement, and this amount is recognized as non-operating income, resulting in no impairment to the company's overall profitability.

The company pointed out that despite the temporary cancellation of some product shipments in May, demand for LEO satellite applications remains strong. LEO satellite-related revenue still accounted for a high 75% of May's total revenue. Cumulatively, for the first five months of this year, the LEO satellite revenue share reached 78.6%. Compared to the same period last year, both May and the first five months' revenue grew by more than 50%, indicating that the product mix is continuously concentrating on high-growth application areas, and the LEO satellite business has become a core driver of operational growth.

Recent global development of the LEO satellite industry remains positive. According to industry report forecasts, the number of global LEO satellite communication users could exceed 15 million by the end of 2026, and the scale of LEO communication satellite constellations will continue to expand. Meanwhile, direct-to-cell (D2C) satellite connectivity applications are seen as an important growth direction for the future satellite communications market.

Senao Networks stated that while short-term monthly revenue fluctuated due to customer product revisions and shipment schedule adjustments, customer certification for new projects and the expansion of new customers are progressing smoothly. As the LEO satellite industry enters a clearer phase of commercial operation and mass production, the company has a more concrete and positive development foundation for its future operational outlook compared to the beginning of the year. (Editor: Chang Li-Jen) 1150605