Vivotek Adjusts Product Prices in Q3 in Response to Exchange Rate Fluctuations

Leading security surveillance company Vivotek (3454) reported a net loss per share of NT$0.82 in Q2 due to exchange rate fluctuations. In response to market volatility, Vivotek announced at its investor conference on the 15th that it would implement contingency plans, including continued cost reduction, operational efficiency improvements, and enhanced productivity and financial performance. The company will also raise product prices in Q3.

With over 50% of its revenue coming from the U.S. market, Vivotek's profitability was impacted by the sharp appreciation of the U.S. dollar in Q2. The company's consolidated revenue reached NT$2.06 billion, a 22.6% year-on-year increase, but it recorded a net loss of NT$71 million, with a net loss per share of NT$0.82. For the first half of the year, cumulative revenue totaled NT$4.031 billion, with a net loss per share of NT$0.17.

However, H1 revenue still showed 24% growth, driven by AI products and cloud business expansion, reflecting the company's focus on AI applications and digital transformation.

To address market volatility, Vivotek's contingency plan includes not only cost reduction and price increases but also improving inventory turnover to mitigate exchange rate impacts, reducing operating expenses, and enhancing productivity and financial performance. The company will continue to drive revenue growth in the U.S. market while closely monitoring interest rates, inflation, and the NT dollar/USD exchange rate to minimize impacts on operations and profitability.