Flash memory controller supplier Phison Electronics has reported net profits surged 55% sequentially to NT$1.83 billion (US$64.3 million) in the third quarter, with EPS reaching NT$9.30.

Phison posted revenue of NT$11.93 billion in the third quarter, up 10% on quarter. The company credited its positive performance during the quarter to a ramp-up in shipments of its PCIe Gen4 SSD controllers, as well as a pick-up in demand for game consoles.

Phison's gross margin stayed high at 23.02% in the third quarter. The company remains focused on high-margin products for profitability.

Phison also disclosed its inventory level may have already peaked for 2020 between May and July, and has fallen substantially since September.

Besides, Phison generated profits from its non-operating businesses including Kingston Solutions (KSI), its JV with Kingston Technology, in the third quarter. Phison also recognized NT$967 million worth of gains from the sale of part of its stake in KSI during the quarter.

Phison's EPS for the first three quarters of 2020 came to NT$24.94, rising from NT$23.05 a year earlier. The company expects to post revenue and profit increases this year.

Phison expressed optimism about its outlook for 2021, citing strong growth in sales of its PCIe SSD controllers, and eMMC device controllers and modules. Phison continued its PCIe Gen4 SSD controllers have been adopted for new-generation notebooks slated for launch next year.

Phison on track to generate revenue and profit growth in 2020
Photo: Digitimes file photo