Powermatic Data Systems

[Squirrel]

There has been some recent news on the spat between Qualcomm and ARM. Not sure how this would impact Powermatic, but from what I can glimpse, it seems to rely heavily on Qualcomm products, which is a juggernaut in the wireless connection technology sector.

Of course, the companies themselves seem pretty unaffected (share price wise) by the legal dispute. However for small companies that have a dependency on their products, that might be a different outcome.

Will be interesting to see what the outcome is.

[weijian]

@dreamybear,
I think it probably means that prior covid-19 years' revenue were largely an aberration - boosted by over-ordering in response to the micro-chip long lead times which were up to 10-12months at 1 period. So now, we know that the "pretty spectacular YoY increases in revenue" during covid-19years were not genuine demand, but demand pulled forward. To be fair, I looked back at my notes and observed that Chairman Mun had expressed the type of pessimism that warrant current results more than 1 year ago (in FY23 end/1H24).

@Squirrel,
Powermatic Data specializes in customizing microchip sets used for wifi applications (it is an order based business). These microchip sets have their parts ordered from 3rd parties (eg. chipmakers) and then assembled in-house. Their products are based on Qualcomm design and standards. ARM and Qualcomm are competing with each other in terms of licensing their wide array of design/standards to others. ChatGPT said that their dispute is related to some Qualcomm's acquisition done in 2021 and since Powermatic Data has been using Qualcomm's design/standards for a long time, it is highly probable not related or will there be any future impact.