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TAIPEI, Nov. 30, 2023 /PRNewswire/ -- DFI, the world leading brand in embedded motherboards and industrial computers (IPC), announced it will continue to focus on its embedded, cybersecurity, and automation businesses and advance toward its mid-to long-term goals. Faced with weak global economic growth and slow economic recovery in China, customers have been conservative in placing orders. DFI's third quarter consolidated revenue was NT$3.922 billion, representing a quarterly increase of 4% and an annual decrease of 4%. Its operating profit was NT$713 million.
During the third-quarter investor conference on November 15th, DFI reported major results in three business areas. The gross margin for the embedded business improved compared to last quarter and the same period last year, exceeding 30%, showing positive growth in response to the optimization of the company's operating structure and product costs. The performance of the cybersecurity business is expected to improve with the shipment of orders in Q4. The automation market is expected to gradually recover as customer demand for machine tools remains. The overall inventory of each business has continued to decline, gradually returning to the healthy levels of 2020.
According to data published by the Chung-Hua Institution for Economic Research at the start of this month, Taiwan's manufacturing PMI was 47.1 in October, marking the eighth consecutive monthly contraction. However, since May 2023, the index has been hovering around the expansion threshold of 50 on the business cycle indicator. Expectations are that it will gradually return to the expansion zone above 50.
Regarding this, DFI Vice Chairman Michael Lee stated that although the overall market has been affected negatively by external factors, emerging application development trends have aided with the recovery of the market. The business outlook will not be as pessimistic as the company aims for stability in the midst of gradual recovery. DFI is now refocused on its three major businesses, aiming to achieve a consolidated gross margin of 30%. In terms of the mid to long term, there is still strong demand in cybersecurity, automation, smart healthcare, transportation, and new energy applications, which will drive growth for DFI.
DFI's cumulative consolidated revenue in the first three quarters was NT$11.503 billion, showing an annual decrease of 3%. The operating profit was NT$2.327 billion, and EPS was NT$2.42. The gross operating profit margin was maintained compared to the same period last year.
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