Techpoint, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, a fabless semiconductor firm specializing in mixed-signal integrated circuits for automotive and security surveillance applications, experienced a notable increase in total assets, rising to $91.3 million from $83.8 million at the end of 2023. Current assets also grew, with cash and cash equivalents surging to $46.2 million, up from $13.7 million.

For the three months ended September 30, 2024, Techpoint generated revenue of $18.5 million, a 6% increase from $17.5 million in the same period of 2023. For the nine months, revenue reached $51.6 million, reflecting a 10% increase from $47.0 million year-over-year. The automotive segment was a key driver, with revenue for the nine months rising 21% to $37.6 million, while security surveillance revenue decreased to $14.0 million from $15.8 million.

Gross profit for the third quarter was $9.8 million, up from $9.4 million, while gross margins remained stable at 53%. However, income from operations for the quarter fell to $4.8 million from $5.3 million, and net income decreased slightly to $5.1 million from $5.2 million. For the nine-month period, net income increased to $13.8 million from $12.6 million, with basic net income per share rising to $0.74 from $0.69.

Operating expenses increased, with research and development costs rising 43% in the third quarter due to higher tape-out expenses. Selling, general, and administrative expenses also saw a 7% increase, primarily from professional service costs. The company reported net cash provided by operating activities of $10.8 million for the nine months, down from $17.5 million in the previous year, while net cash provided by investing activities surged to $31.1 million from a negative $7.9 million.

Strategically, Techpoint acquired certain assets from Broadvis Corporation in July 2023, enhancing its intellectual property portfolio. The company continues to navigate challenges posed by macroeconomic conditions, including inflation and supply chain issues, while actively monitoring their impact on operations and financial performance. As of September 30, 2024, Techpoint had 103 employees, with plans to expand its workforce to support growth initiatives, particularly in the Asia-Pacific region.