Tuesday, August 22, 2023

Tokyo Electron's Q1 2024 Earnings Call Unveils Resilient Performance and Strategic Focus

Tokyo Electron Limited (OTCPK: TOELF), a prominent semiconductor equipment manufacturer, recently held its Q1 2024 Earnings Conference Call, revealing a resilient financial performance and strategic initiatives. Key representatives including Toshiki Kawai (CEO) and Hiroshi Kawamoto (Finance Division GM) presented the company's consolidated financial summary and insights into the business environment.

Financial Highlights:
- Q1 2024 sales reached ¥391.7 billion, showing a 29.8% decline due to reduced customer WFE spending.
- Gross profit at ¥162.3 billion and operating income at ¥82.4 billion represented drops of 35.5% and 46.0% from the prior quarter, respectively.
- Tokyo Electron invested in R&D, allocating ¥43.6 billion, while capital expenditures amounted to ¥39.3 billion, reflecting its commitment to innovation and expansion.

Market Outlook:
- Tokyo Electron discussed the WFE market's projected growth to $200 billion within 2024-2025.
- The company foresees opportunities in server, leading-edge CPU, DRAM, NAND, GPU for AI, HBM, power semiconductors for EV, and more.

Fiscal 2024 Estimates:
- Financial estimates remain unchanged, with ¥580 billion and ¥690 billion projected for the first and second halves of FY 2024, respectively, in SPE new equipment sales.
- Tokyo Electron aims for record-high R&D investment of ¥200 billion and CapEx of ¥124 billion to align with growth projections.

Share Repurchase and Dividend:
- Tokyo Electron's ongoing share repurchase program bought 3,069,200 shares worth ¥60.9 billion by July 31.
- The company plans to continue repurchase up to ¥120 billion by December 31, 2023.
- A consistent dividend forecast maintains a full-year dividend per share of ¥320.

Tokyo Electron's Q1 2024 Earnings Call provided a comprehensive overview of its robust performance and strategic direction, positioning the company to capitalize on growth opportunities in the semiconductor sector.

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