Artery Technology Estimates 60% Revenue Growth This Year; Buoyed by New Window-Cleaning Robot Applications

(Central News Agency, Reporter Chang Chien-chung, Hsinchu, 23rd) Microcontroller unit (MCU) manufacturer Artery Technology (雅特力-KY) anticipates its second-quarter revenue to grow by 17% to 19% quarter-over-quarter, with total revenue projected to increase by about 60% by 2026. In addition to customers pulling forward orders to mitigate price hike risks, the influx of new applications such as 3D printing and window-cleaning robots, coupled with a recovering market demand for electronic signage, serve as the primary growth drivers.

Artery Technology held an online earnings call today to announce its first-quarter operational results. Benefiting from an expanding end-application market, the company's Q1 revenue climbed to NT$653 million, representing a 51% increase quarterly and a 75% surge year-over-year, with a gross profit margin of 35%. Net income after tax stood at NT$68 million, up 89% quarter-over-quarter and 386% year-over-year, translating to an EPS of NT$1.16.

Huang Cheng-chun, Chief Operating Officer of Artery Technology, stated that operations have entered an accelerated growth phase, with Q1 revenue already achieving one-third of last year's total. He expects Q2 revenue to continue growing by 17% to 19% sequentially.

Wang Kuo-yung, Chairman of Artery Technology, indicated that total revenue by 2026 is expected to grow by 60%. The second quarter will likely be the operational peak for this year, and the first half's performance will significantly outpace the second half. This is primarily because the supply chain—including foundry, packaging, testing, and memory—is raising prices; to avoid these hikes, customers are actively pulling in inventory during the first half, making the outlook for the second half relatively cautious.

Huang noted that new applications like smart home window-cleaning robots and smart industrial 3D printing, along with a rebounding demand in the electronic signage market, are key growth drivers this year. Furthermore, high oil prices have spurred demand for e-bikes, which also benefits Artery's operations.

Wang added that aside from bonuses for Chinese employees, Artery is accelerating its edge computing development. This involves not only upgrading the development environment but also paying increased royalty fees to Arm. It is estimated that operating expenses will rise by 40% to 50% by 2026; however, the overall operating margin should still outperform last year's levels.

Addressing the recent wave of price hikes in the MCU market, Huang clarified that it is not driven by robust end-market demand. Instead, strong AI demand is monopolizing production capacity, and alongside rising raw material costs, manufacturers are facing significant cost pressures. Artery Technology will make moderate price adjustments and negotiate amicably with customers, expecting to maintain a flat gross profit margin. (Editor: Chang Chun-mao) 1150423