How did Kurisofa Semiconductor's revenue and expenses shift in Q1 2025?

Kurisofa Semiconductor's revenue decreased by 4.2% from the previous quarter, while expenses remained relatively stable, resulting in a significant decline in gross margin and net income. The company's financial performance was negatively impacted by lower wafer shipments and the recognition of market conditions through pricing adjustments, despite strong revenue from its 22/28nm processes and record high revenue from OLED display driver ICs and digital TV chips. The decline in revenue and gross margin was partially offset by cost control measures and the implementation of a cash dividend policy, which reflects the company's focus on shareholder returns despite the challenging market conditions. 1. **Revenue Shift**: - **Q1 2025 Revenue**: The consolidated revenue for the first quarter of 2025 was NT$57.86 billion. - **Comparison with Previous Quarter**: This represents a decrease of 4.2% from NT$60.39 billion in the previous quarter (Q4 2024). - **Year-over-Year Comparison**: There was a 5.9% increase in revenue compared to the first quarter of 2024. - **Segmental Performance**: Notably, the 22/28nm process revenue hit a record high, constituting 37% of the total sales. This was driven by a 46% quarter-over-quarter increase in 22nm revenue from various product categories, including OLED display drivers, image signal processors, and digital TV and WiFi chips. 2. **Expense Shift**: - **Gross Margin**: The consolidated gross margin for Q1 2025 was 26.7%. - **Net Income**: The net income attributable to the shareholders of the parent was NT$7.78 billion, with earnings per ordinary share of NT$0.62. - **Operating Expenses**: Specific details about operating expenses are not available. However, the company mentioned cost control measures and the introduction of a cash dividend policy, which implies that despite the revenue decline, they were able to manage expenses effectively. In conclusion, Kurisofa Semiconductor experienced a decline in revenue and a significant drop in gross margin in Q1 2025, primarily due to lower wafer shipments and market conditions. However, effective cost management and strategic initiatives such as the cash dividend policy helped mitigate the impact on net income.