Chips&Media Reports Q1 Consolidated Sales of 4.9 Billion KRW

Seoul, South Korea - Apr 24, 2024

Enhancing shareholder value with 3 billion KRW buyback

Chips&Media, a leading global video IP company, announced its sales results for the first quarter of 2024 through a business performance report on the 24th.

It reported consolidated sales of KRW 4.9 billion, a 24.3% YoY decrease. The company attributed the decline to the postponement of the global license to the second half of this year. It foresees a rebound in financial performance in the latter half of 2024, expecting this temporary dip to recover as licensing revenue gets back on track.

The company plans to diversify its operations by sector and nation in 2024, aiming to conclude new licensing agreements with existing customers in areas such as AI, data centers, mobile, and automotive industries. Additionally, it anticipates acquiring new global customers, including US data centers and Japanese automotive companies, in the second half of the year. This strategic expansion is projected to positively impact sales growth in the mid-to-long term.

Its sales model employs a dual-structure approach, where additional royalties are incurred based on sales volume whenever the licensed IP is commercialized as a semiconductor chip. With their new licenses being adopted by major clients, additional royalty revenue is anticipated in the future.

Meanwhile, Chips&Media will engage in the purchases of its own shares worth 3 billion KRW. “This buyback is a decision to increase shareholder value in a challenging internal and external environment, given the company’s substantial cash assets,” a company official said.

Kim Sang-hyun, CEO of Chips&Media, stated, “New licenses of our NPU IP (CMNP) are expected as early as Q2 2024. Consequently, we predict numerous new licensing opportunities due to the increasing demand from global customers for new video products set to be released in the second half of this year.”

(https://www.newspim.com/news/view/20240424000890)