Nano Electronics And (7730.TWO) Q1 2025 Earnings Report

Nano Electronics And Micro System T (7730.TWO) reported Q1 2025 revenue of 83.131 million TWD, a sharp year‑over‑year decline of 36.9% and a sequential drop of 70.8% (YoY/QoQ respectively). The gross profit was 35.262 million TWD, yielding a gross margin of 42.42%, while operating income was a modest 0.724 million, translating to an operating margin of 0.87%. Net income reached 2.879 million, or 3.46% of revenue, with basic and diluted EPS of 0.10 TWD. EBITDA stood at 8.689 million, a margin of 10.45%. The company maintained robust liquidity and a strong balance sheet, ending the period with 465.629 million TWD in cash and equivalents and a net debt position of -307.612 million TWD (i.e., cash greater than debt). Current assets totaled 819.227 million TWD against total liabilities of 361.804 million TWD, producing a healthy current ratio around 3.94. Free cash flow was positive at 4.223 million TWD, while operating cash flow contributed 4.243 million TWD for the quarter. R&D expense remained meaningful at 6.283 million TWD, underscoring ongoing innovation in plasma surface treatment and related vacuum products. The revenue deterioration reflects cyclical conditions typical of the industrial machinery sector and semiconductor-related equipment spending, rather than an abrupt erosion of the company’s underlying value proposition. Absent an explicit management forecast in the provided data, investors should weigh the balance sheet strength, modest profitability, and potential catalysts from the broader capex cycle in semiconductor fabrication and related process equipment. Given the lack of disclosed forward guidance, the near-term outlook hinges on industry demand recovery, product mix evolution, and the company’s ability to scale higher-margin offerings. Overall, Nano Electronics is financially resilient with ample liquidity to fund R&D and selective growth initiatives, albeit exposed to cyclical demand in its core markets.