[Hsinchu, Taiwan, May 13, 2021] Accton Technology today reported the following financial results for the first quarter of 2021, as approved at its board meeting. Accton is also announcing plans to invest NTD 2.78B in the Zhubei campus project, and the board authorized Chairman Frank Kuo to execute the budget expenditure by the approved plan.
The board has also appointed Meen-Ron Lin, CFO of Accton, as special assistant to the President to be responsible for innovation in open networking technology and system integration. The board of directors has appointed Fanny Chen, Sr. Finance Director, as the new CFO. Both new appointments will be effective as of June 18, 2021.
Fai-Long Kuo, Chairman of Accton, stated that, in addition to her CFO role, Meen-Ron Lin has also been responsible for decades for developing the branded business within the Accton group, as well as the evaluation of new strategic investments in innovative technology. With her vast experience in the open networking field and insights into technology innovation, Meen-Ron will further contribute to Accton’s development of new technology solutions and increased synergy among technology, industry, and academia.
Fanny Chen’s appointment as Accton’s new CFO is part of Accton’s active promotion of a new generation of leaders. Fanny Chen is a seasoned finance leader who will continue implementing the company’s strategic plan. She has been actively responsible for the financial planning of several major investment projects in recent years.
Highlights of Accton’s Q1 2021 results :
• Consolidated revenue:
• Consolidated operating margin and operating profit:
• Consolidated net income:
• Earnings per Share (EPS)
Accton Group CEO, Edgar Masri, stated, “Despite strong headwinds from the Covid-19 pandemic and the global component shortage, we were able to deliver record revenue of NTD 13.19 billion in the first quarter of 2021, up 13% from the first quarter of 2020. The continued growth was fueled by our focus markets, hyperscalers, communication service providers, and enterprises.
Our focus on delivering innovative 400G Ethernet data center platforms to our hyperscaler customers is paying off with a substantial ramp-up starting in the second quarter. We also see traction in our Service Provider-focused access and aggregation router portfolio. 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 performing well, with several key wins from large distributed retailers. The flexibility, choice, and lower cost of ownership resonate with these customers. Finally, we continue to invest in emerging technologies such as Artificial Intelligence and Quantum Computing along with select strategic partners.
While the visibility of demand in 2021 continues to improve, the global component supply shortages and currency exchange rate fluctuations have negatively impacted our gross margins in the short term. We continue to work with our customers and our key suppliers to provide resiliency and mitigate supply disruptions”.
