【Hsinchu, Taiwan, Aug 12, 2021】Accton Technology today reported the following financial results for the second quarter of 2021, as approved in its board of directors meeting.
Highlights of Accton’s Q2 2021 results:
• Consolidated revenue:
• Consolidated operating margin and operating profit:
• Consolidated net income:
• Earnings per Share (EPS)
Edgar Masri, Accton Group CEO, commented, “Despite strong headwinds from the Covid-19 pandemic and the global component shortage, we were able to deliver revenue of NTD 14.05 billion in the second quarter of 2021, up 11% from the second quarter of 2020. Our loyal customer base and new customer channels in Asia accounted for most of this growth.
Component shortages, price increases on critical components, expedite fees, and Covid-19 related disruptions contributed to a decline in our gross margins and shipments in the second quarter.
Our progress in delivering our innovative 400G data center platforms to our hyperscaler customers remains steady but growth has been delayed by Covid-19 and component shortages.
We were also pleased to participate along with our software and integration partners in new deployments of our access and aggregation routers in Africa. Operators are leveraging these platforms to build out 4G and 5G mobile networks and address the growth in fixed broadband access. Our enterprise portfolio is also gaining momentum, particularly with large, distributed retailers.”
The Accton management team is unsatisfied with the Q2 2021 financial performance. We recognize that we must adjust rapidly to changing market dynamics and further increase customer, partner, and supplier intimacy to ensure successful outcomes. Our collaboration with our valued customers to support their rapid network expansion requirements despite select product cost increases due to global component shortages have allowed us to maintain a robust demand pipeline. We have implemented and continue to implement many initiatives to improve productivity, including manufacturing modernization using AI technologies, facility optimization, and continued investments in IT systems for our digital transformation. We are confident that these measures will improve our execution, increase customer satisfaction and deliver value to our shareholders.
Second half of 2021 will continue to be challenging. We face downward pressure on both revenue and gross margins due to lack of visibility of component supply as well as currency exchange fluctuations. We will improve our internal processes and work with our customers and key suppliers to provide resiliency, minimize supply disruptions, and improve margin in the short term.
