Padu Achieves 25.6 Billion KRW in Q3 Sales and 68.5 Billion KRW in Annual Cumulative Sales

Sales Surge 2.5 Times Year-on-Year
Driven by Rising Demand for AI Data Center SSDs
MSCI Index Inclusion Signals Positive Outlook for Global Investment

Padu, a semiconductor company specializing in data center solutions, announced on November 12 that it recorded sales of 25.6 billion KRW in the third quarter of this year and cumulative annual sales of 68.5 billion KRW.

Exterior view of Padu building. Padu

Compared to the same period last year, sales surged significantly. Padu posted sales of 10.1 billion KRW in the third quarter of last year, but this year’s third-quarter sales jumped 2.5 times to 25.6 billion KRW. This is interpreted as the result of fully benefiting from the rising demand for solid-state drives (SSDs) for artificial intelligence (AI) data centers.

According to recent earnings announcements from NAND flash memory companies, demand for enterprise SSDs next year is already projected to far exceed supply, leading to significant price increases. Amid these market trends, Padu appears to have recently secured additional hyperscale cloud service providers and large server clients.

Padu has also been recognized for its technology and growth potential, having been included in the MSCI Global Small Cap Index, a benchmark used by global investors for portfolio construction. As the MSCI index selects companies that meet certain criteria such as liquidity, market capitalization, and governance, Padu is expected to benefit from increased awareness among overseas investors and improved capital inflows.

Padu also significantly reduced its operating loss, thereby improving profitability. In the third quarter of this year, the company recorded an operating loss of 11.4 billion KRW, which is about a 63% reduction compared to the 30.5 billion KRW loss in the same period last year. Gross profit also increased. Third-quarter gross profit was 11.9 billion KRW, up about 441% from 2.2 billion KRW a year earlier. Meanwhile, selling and administrative expenses in the third quarter amounted to 23.3 billion KRW, a decrease of about 29% from 32.8 billion KRW in the same period last year.

A Padu representative stated, "While focusing on the development of next-generation controller chips this year, we have continued to improve quarterly sales and operating losses. In addition to the recently announced large-scale order, we are continuously receiving new orders for controller and SSD module businesses from new clients."

This content was produced with the assistance of AI translation services.