WT Microelectronics (3036 TT) today announced its unaudited monthly sales for September 2023 totaled NT$62.9 billion (US$1,985 million approximately), an increase of 25% from August 2023 and a decrease of 1% over September 2022. Sales for the third quarter 2023 reached NT$167.2 billion (US$5,315 million approximately), an increase of 42% from the second quarter 2023, and an increase of 7% over the third quarter 2022, set new record for quarterly revenue, above the high end of guidance (NT$140 billion ~ NT$150 billion). Aggregated sales for January to September 2023 totaled NT$404.8 billion (US$13.1 billion approximately), a decrease of 2% compared with the same period in 2022.
TAIPEI, Taiwan and MONTREAL, Canada, September 14, 2023 – WT Microelectronics Co., Ltd. (TAIEX: 3036) ("WT Microelectronics") today announced that it has entered into a definitive agreement to acquire 100% of the shares of Future Electronics Inc. ("Future Electronics") for an enterprise value of US$3.8 billion in an all-cash transaction. The strategic transaction is anticipated to deliver long-term, sustainable value to all relevant stakeholders including customers, suppliers, employees, and shareholders through the combination of two highly complementary organizations.
Future Electronics, a Canadian-based leading global distributor of electronic components, generated revenues of US$2.9 billion, operating income of US$228 million, and net income of US$184 million for the six months ended on June 30, 2023. The privately-held company, with approximately 5,200 employees in 47 countries, provides customers with application engineering expertise and supply chain services covering a portfolio of electronics from industry leading suppliers.
"This is transformational for WT Microelectronics and Future Electronics and important for the electronic component ecosystem," said Eric Cheng, Chairman and CEO of WT Microelectronics. "Future Electronics has an experienced and deep management team and a very talented employee base, and is highly complementary to WT Microelectronics in terms of product offerings, customer coverage, and global footprint. Future’s management team, all of their employees worldwide, and all locations and distribution centers will continue to operate and add value to the organization. We are excited to invite Mr. Omar Baig to join WT Microelectronics’ Board of Directors post-closing and look forward to working with him and his immensely talented colleagues around the world to build together a best-in-class electronic components distributor."
"We are excited to join WT Microelectronics and believe that this transaction will benefit all our stakeholders. Our two companies share a common culture, driven by a rich entrepreneurial spirit that will empower our talented employees globally", said Omar Baig, President, CEO and Chairman of Future Electronics. "This combination is a great opportunity for WT Microelectronics and Future Electronics to jointly form a world-class industry leader, and allows us to continue our long-term strategic plan to offer the highest level of services to our customers, which we have been doing for the past 55 years."
Transaction Benefits
Approvals and Financing
WT Microelectronics intends to fund the transaction with a combination of cash on hand and committed debt financing provided by DBS Bank. The transaction has been unanimously approved by WT Microelectronics’ Board of Directors and Future Electronics’ Board of Directors, and is expected to close in the first half of 2024, subject to customary closing conditions including the receipt of required regulatory approvals.
Advisors
Citigroup is serving as the exclusive financial advisor to WT Microelectronics, with Skadden, Arps, Slate, Meagher & Flom LLP, Osler, Hoskin & Harcourt LLP, and Tsar & Tsai Law Firm as its legal advisors. Canaccord Genuity Corp. is serving as the exclusive financial advisor to Future Electronics with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. as its legal advisor.
About WT Microelectronics
Founded in 1993 and headquartered in Taiwan, WT Microelectronics is one of the leading and fastest growing semiconductor components distributors globally. WT Microelectronics partners with over 80 suppliers across every major technology segment to serve a highly diversified customer base of over 10,000 customers worldwide. Additional information about WT Microelectronics can be found at https://www.wtmec.com/。
About Future Electronics
Future Electronics is a global leader in electronics distribution, recognized for providing customers with global supply chain solutions, custom-tailored engineering services and a very extensive variety of electronic components. Founded in 1968, Future Electronics believes its 5,200 employees are its greatest asset, with 170 offices in 47 countries. Future Electronics is globally integrated, with a unified IT infrastructure that delivers real-time inventory availability and access to customers. With the highest level of service, the most advanced engineering capabilities, and the largest available-to-sell inventory in the world, Future’s mission is always to Delight the Customer®. For more information, visit www.FutureElectronics.com。
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for August 2023 totaled NT$50.4 billion (US$1,501 million approximately), a decrease of 7% from July 2023 and an increase of 12% over August 2022. Aggregated sales for January to August 2023 totaled NT$341.9 billion (US$11.1 billion approximately), a decrease of 2% compared with the same period in 2022.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for July 2023 totaled NT$54.0 billion (US$1,739 million approximately), an increase of 32% from June 2023 and an increase of 15% over July 2022. Aggregated sales for January to July 2023 totaled NT$291.6 billion (US$9.51 billion approximately), a decrease of 4% compared with the same period in 2022.
WT Microelectronics (3036 TT) ("WT") held the on-line investor conference today to update the financial results of the second quarter of 2023 and business outlook. Consolidated revenue for the second quarter of 2023 was NT$117.5bn (US$3.83bn approximately), operating profit was NT$2,041mn (US$66.5mn), net profit after tax attributable to owners of the parent was NT$965mn (US$31.4mn approximately), and EPS was NT$0.79 based on weighted average outstanding shares. Consolidated revenue for the first half of 2023 was NT$237.6bn (US$7.78bn approximately), operating profit was NT$4,024mn (US$131.7mn), net profit after tax attributable to owners of the parent was NT$1,688mn (US$55.2mn approximately), and EPS was NT$1.61 based on weighted average outstanding shares.
For the outlook of the third quarter of 2023, based on the exchange rate assumption of one US dollar to 31.1 NT dollar, mid-point consolidated revenue guidance is expected to be NT$145bn (US$4.66bn approximately), up 23% quarter on quarter. Mid-point net profit after tax attributable to owners of the parent guidance is expected to be NT$1,275mn (US$41mn approximately) and mid-point EPS guidance based on weighted average outstanding shares is expected to be NT$1.44.
WT has published the sixth sustainability report, which is for Year of 2022 and English version report will be launched soon. We continues to improve performance in environment, social, and governance aspects. In addition, one independent director has been added and independent director portion increased to 50% on the board this year. WT will continue to pursue outperformed growth and market share expansion and to execute digital optimization to improve operation efficiency. We values corporate sustainability and targets long-term sustainable growth.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for June 2023 totaled NT$40.8 billion (US$1,324 million approximately), an increase of 11% from May 2023 and a decrease of 6% over June 2022. Sales for the second quarter 2023 reached NT$117.5 billion (US$3,826 million approximately), above the high-end of guidance of NT$110 billion , a decrease of 2% from the first quarter 2023, and a decrease of 10% compared with the second quarter 2022. Aggregated sales for January to June 2023 totaled NT$237.6 billion (US$7,776 million approximately), a decrease of 8% compared with the same period in 2022.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for May 2023 totaled NT$36.7 billion (US$1,193 million approximately), a decrease of 8% from April 2023 and a decrease of 13% over May 2022. Aggregated sales for January to May 2023 totaled NT$196.8 billion (US$6,452 million approximately), a decrease of 8% compared with the same period in 2022.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for April 2023 totaled NT$40.0 billion (US$1,308 million approximately), an increase of 3% from March 2023 and a decrease of 10% over April 2022. Aggregated sales for January to April 2023 totaled NT$160.1 billion (US$5,259 million approximately), a decrease of 7% compared with the same period in 2022.
WT Microelectronics (3036 TT) (“WT”) held the on-line investor conference today to update the financial results of the first quarter of 2023 and business outlook. Consolidated revenue for the first quarter of 2023 was NT$120.1bn (US$3.95bn approximately), operating profit was NT$1,983mn (US$65.2mn), net profit after tax attributable to owners of the parent was NT$723mn (US$23.8mn approximately), and EPS was NT$0.82 based on weighted average outstanding shares.
For the outlook of the second quarter of 2023, based on the exchange rate assumption of one US dollar to 30.6 NT dollar, mid-point consolidated revenue guidance is expected to be NT$106bn (US$3.46bn approximately). Mid-point net profit after tax attributable to owners of the parent guidance is expected to be NT$802mn (US$26.2mn approximately) and mid-point EPS guidance based on weighted average outstanding shares is expected to be NT$0.6.
The Board of Directors approved common shares dividend distribution for Year of 2022 which dividends belong to. Total amount of cash distributed to shareholders will be NT$3,812mn (US$124.6mn approximately) and cash dividend per share will be NT$4.3. WT has been honored the overall top 5% best result in the governance ranking by TWSE this year for the third time in a row, which shows corporate team work effort of the implementation of corporate sustainability and the promotion of corporate governance have been affirmed.
Global professional market research institution – Gartner published Year 2022 semiconductor distributor ranking report. WT’s market share in Asia Pacific increased 2.8 percentage point from 9.2% in 2021 to 12.0% in 2022. In the past six years, WT has doubled its market share in Asia Pacific from 6.0% in 2016 to 12.0% in 2022. WT will continue to pursue outperformed growth and market share expansion and to execute digital optimization and refine operation management system to improve operation efficiency. WT values corporate sustainability and targets long-term sustainable growth.
WT Microelectronics (3036 TT) today announced its unaudited monthly sales for March 2023 totaled NT$39.0 billion (US$1,275 million approximately), an increase of 21% from February 2023 and a decrease of 17% over March 2022. Aggregated sales for the first quarter 2023 totaled NT$120.1 billion (US$3,950 million approximately), a decrease of 6% compared with the same period in 2022, slightly above high end of guidance (NT$112 billion ~ NT$120 billion).