Business Overview

July 30 — Radiant Opto-Electronics (TWSE: 6176) today announced its operating results for the second quarter of 2026. Consolidated revenue reached NT$11.08 billion, down 8% from the previous quarter, while gross margin was 21.4%, bringing first-half gross margin to a record high for the same period. The Group continued to optimize its product mix to improve profitability, driven by a higher contribution from automotive products and the emergence of AI PCs as a new growth driver. Net income for the quarter was NT$240 million, with earnings per share (EPS) of NT$0.52.

In addition to continued investment in new businesses, which affected recurring earnings, the Group recognized NT$400 million in expenses after its overseas subsidiary achieved a significant milestone. While the milestone represents meaningful progress in the Company’s new business development, the related expense weighed on reported earnings for the quarter.

Product Portfolio

In the consumer electronics segment, global supply chain capacity continued to be constrained by strong demand from AI and high-performance computing (HPC) servers, resulting in extended lead times and higher prices for key components such as logic chips and memory. These supply constraints led to fluctuations in end-product orders and affected overall shipments. Looking ahead, the consumer electronics business is expected to remain stable in the second half, with demand for backlight modules and revenue contribution broadly in line with the first half.

The automotive business continued to demonstrate solid transformation momentum. During the second quarter, shipments declined as several lower-priced edge-lit automotive display products were gradually phased out. At the same time, higher-end direct-lit products continued to increase, resulting in a lower-volume, higher-value product mix. Radiant is the primary supplier of backlight modules for automotive displays used by Mercedes-Benz, BMW, and Audi, and has secured multi-year supply agreements with these leading European automakers. As new vehicle models continue to be launched, the Company remains optimistic about the outlook for its automotive business this year.

AI PCs have also become a new growth driver. Leveraging its high-brightness backlight technology to meet the demanding display requirements of AI PCs, Radiant has successfully entered the supply chain for NVIDIA RTX Spark AI PCs, further enhancing its product portfolio.

Strategic Outlook

The Company’s overseas subsidiary achieved a major milestone after solutions were adopted by a key customer. This milestone advances the mass production of next-generation products and marks an important step in the Company’s new business diversification. More importantly, it opens the door to a new category of consumer electronics beyond Radiant’s traditional notebook and tablet businesses, significantly strengthening management’s confidence in achieving its 2028 new business ramp-up target.

Radiant has also secured a long-term supply agreement this year for AR waveguides with a European defense customer, with initial shipments scheduled by the end of 2026. Discussions with a U.S. defense customer are progressing as well. Chairman Yu-Chao Wang said defense applications require exceptionally stringent technical specifications and supplier qualification standards. Successfully entering the defense sector therefore represents an important milestone for Radiant. These customers continue to push the Company to advance the limits of its technology while creating opportunities for stronger profitability.

The Company is also actively expanding its metalens business. Its MetaEye eye-tracking camera module has secured orders from multiple medical customers in Europe and the United States, with shipments expected to begin in the second half of the year. Radiant believes its metalens solutions will play an important role in the rapidly growing machine vision market.

To enhance shareholder value, Radiant’s Board of Directors today approved a share repurchase program under which the Company plans to repurchase 10 million shares on the Taiwan Stock Exchange. The Company emphasized that its financial position remains solid. The share buyback reflects management’s confidence in Radiant’s long-term growth prospects while reinforcing its commitment to shareholder value.

Looking ahead, despite continued challenges including global shipping congestion, inflationary pressures, and supply chain bottlenecks, Radiant will continue to commercialize advanced optical technologies, strengthen its mass production capabilities, and accelerate the execution of its transformation strategy.