KUALA LUMPUR (May 15): Lower revenue recorded and weakening of the US dollar against its functional currencies caused JCY International Bhd to slip into the red with a net loss of RM38.36 million for the second quarter ended March 31, 2018 (2QFY18), compared with a net profit of RM15.41 million a year earlier.

JCY's revenue dropped 14.74% to RM346.7 million from RM406.67 million in 2QFY17.

For the first half of its financial year, JCY suffered a net loss of RM52.46 million compared with a net profit of RM57.48 million in FY17.

Revenue also dipped 10.23% to RM735.78 million from RM819.66 million in the previous year.

"The reduction in revenue comparing to the previous corresponding periods was due mainly to the weakening of the US dollar against functional currencies of the group, lower overall volume shipped and lower average selling price (ASP)," said the hard disk manufacturer in a filing with Bursa Malaysia today.

Going forward, the group said growth of data centres is expected to strengthen the demand in nearline HDD for the quarter ending June 30, 2018. But, it added, the estimation for lower PC notebook and consumer electronic HDD (CE HDD) demand for the next quarter is expected to be in line with the reporting quarter.

Meanwhile, the group said due to seasonal trend, the total addressable market (TAM) is expected to improve in the second half of 2018.

"JCY continues to be competitive in the HDD space, and we are also exploring the possibilities of utilising our competencies and capabilities in other related fields," said the group.

JCY shares closed down 1.5 sen or 4.54% to 31.5 sen, bringing a market capitalisation of RM659.49 million.