【Hsinchu, Taiwan, Mar 18, 2021】Accton Technology today reported the following financial results for the fourth quarter and the full year 2020, as approved at its board meeting. Based on the company’s capital expenditure needs, a NT$6.5 per share cash dividend was proposed and approved in the shareholder meeting in June 2021.
Highlights of Accton’s Q4 and full-year 2020 results:
• Consolidated revenue:
• Consolidated operating margin and operating profit:
• Consolidated net income:
• Earnings per Share (EPS)
Consolidated Revenue
Earnings per Share
Accton Group CEO, Edgar Masri, stated, “Accton’s mission to connect people and communities around the globe with state-of-the-art networking technology and solutions has become a duty as the Covid-19 pandemic ravages the world. Drawing on our core values and human resources, we focused on the proven pillars of Customer Intimacy, Technology Leadership, and Operational Excellence to address the new challenges brought by the pandemic. Strong customer loyalty, steady support from our suppliers, and our employees’ relentless efforts enabled us to deliver record revenues in 2020.
Customer Intimacy
The global pandemic prevented most in-person meetings with existing and prospective new customers. Accton took this opportunity to launch an aggressive digital campaign showcasing our thought leadership, engineering expertise, state-of-the-art manufacturing facilities, and supply chain continuity.
Accton has also transformed our Taiwan facilities to provide safe meeting venues for local customer and partner interactions.
The company is also continuing with many digital transformation initiatives, including expansion, security, and diversification of the supply chain. There is a particular focus on meeting ever-increasing cybersecurity requirements from our customers and partners.
While Accton continues to add new customers in the area of traditional switching, we are proudly innovating in conjunction with our strategic partners in emerging technologies such as Artificial Intelligence and Quantum Computing.
Most importantly, with its innovative products and technology offerings, Accton has enabled cloud and telecom network operators to deliver reliable and scalable network services in these challenging times,
Technology Leadership
The pandemic is driving unprecedented data center investment to increase bandwidth and provide big data analytics. Accton is leading the development of 400G Ethernet technology and will start shipping switches in volume to select customers in the first half of 2021.
Telecommunications companies are also aggressively increasing their investment in 5G infrastructure. Accton is delivering new versions of its flagship 5G Cell-Site Routers (CSR) to leading carriers worldwide. Finally, as highlighted above, Accton continues to invest in forward-looking technologies, including AI, edge computing, quantum computing, and co-packaged optics.
Operational Excellence
As the world grappled in 2020 with geopolitical issues, human resource constraints, and natural adversities, Accton kicked off several initiatives to optimize its research and development capabilities, strengthen and expand its supply chain, and enhance our IT resources.
Accton implemented an expanded and comprehensive Life Cycle Management (“LCM”) process to speed up development and also created a Revenue Assurance Engineering (“RAE”) team to shield customers from the vagaries of component shortages. The company continues to expand and diversify its supply chain capabilities worldwide, specifically in Asia, to provide redundancy, improve supply stability, and minimize the impact of tariffs.
Finally, Accton has been investing heavily in state-of-the-art IT tools to simplify and automate business operations.
While the visibility of demand in 2021 is better than last year, component supply shortages and currency exchange rate fluctuations will be the main uncertainties. Accton will maintain caution in the future and take effective action to meet customers’ and partners’ expectations.
