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Chips&Media Reports 3Q Revenue of 7.03 Billion KRW and Operating Profit of 1.73 Billion KRW
Chips&Media Reports 3Q Revenue of 7.03 Billion KRW and Operating Profit of 1.73 Billion KRW
Seoul, South Korea – Oct 28, 2024
Joint Venture in China Established to Accelerate Chinese Market Share Expansion
Chips&Media, a leading provider of video IP, announced its third-quarter sales performance on October 28. The company’s consolidated revenue for Q3 reached 7.03 billion KRW, marking a 1.1% increase compared to the same period last year.
Operating income for the third quarter decreased by 14.6% year-on-year (YoY) to 1.73 billion KRW, while net income totaled 1.68 billion KRW.
A key driver of this performance was ▲the closure of the first NPU IP licensing agreement, ▲new licenses from existing customers, and ▲a royalty rebound from major customers. However, operating profit decreased YoY due to proactive investments in future growth initiatives.
Chips&Media successfully established a joint venture (JV) in China at the end of September, aimed at fostering stable sales growth within the Chinese market. This strategic move is expected to enhance the company’s potential to secure contracts with leading local tech firms.
The company is also signing successive contracts for edge devices such as AI PCs and NPUs, in line with the growing demand in the on-device AI market.
"In this quarter, we celebrated the achievement of our first licensing agreement for NPU IP," said Kim Sang-hyun, CEO of Chips&Media. "We will continue to strive for meaningful sales growth in key markets like Japan and the United States. At the same time, we are strengthening local sales efforts in China through the newly established JV, which is creating a more favorable business environment and facilitating the acquisition of new customers.”