Fadu posts 7.7 billion won Q1 operating profit, returns to profitability

Data center semiconductor company Fadu said Monday it returned to profitability in the first quarter, posting 59.5 billion won ($59.5 billion won) in revenue and 7.7 billion won in operating profit in a preliminary earnings filing.

The company swung from an operating loss of 12.0 billion won a year earlier to an operating profit of 7.7 billion won. Net profit also turned positive, reaching 10.2 billion won after a 12.1 billion won loss in the same period last year.

Revenue jumped about 210% from 19.2 billion won a year earlier, the company said, citing accelerating demand tied to growth in AI data centers and a surge in enterprise solid-state drive, or eSSD, demand.

Fadu said orders have risen as mass production of its core controller business ramps up for global hyperscalers, and it expects growth to steepen into the second half of the year.

The company said controllers accounted for about 80% of first-quarter revenue, reflecting a shift it has pursued since last year and a sharper improvement in profitability.

Fadu said it plans to make this year a turning point for a “quantum jump” in both revenue and profit. It said it will cultivate new growth engines such as power management integrated circuits, or PMICs, while broadening its customer base by targeting markets in Asia as well as the United States.

The company is also strengthening research and development. In March, it hired Kim Jin-su, a professor in Seoul National University’s Department of Computer Science and Engineering who has researched computer architecture and system software, as chief research officer to pursue next-generation storage system development.

Fadu said its goal is to move beyond supplying SSD controllers and become a comprehensive storage solutions company that designs and provides full storage architectures optimized for AI workloads.

Chief Executive Nam Yi-hyeon said, “This return to profitability is the result of customers recognizing the technology and sincerity Fadu has worked hard to build over a long time.” She added, “Now that we have fully established ourselves in the global hyperscaler ecosystem, revenue and profit will begin to grow in earnest.”