KUALA LUMPUR (April 25): Unisem (M) Bhd expects its topline growth in the second quarter of this year to rise between 8% and 9% quarter-on-quarter in US dollar terms.

Despite its first quarter ended March 31, 2018 earnings slumping 87% year-on-year, mainly due to recognition of foreign exchange losses, the company however foresees this should not happen in the second quarter as the company expects the ringgit to remain stable against greenback.

"The business from March onwards has shown some pick-up, and I do not foresee ringgit to further drop against the US dollar, so we will perform better than the first quarter," the company's chairman cum managing director John Chia Sin Tet said.

Focusing on the long-term growth of the business, Chia said he believed that in annualised terms, the result is still commendable.

"We have been doing reasonably well for the last three to four years, every quarter we made money, but this year (first quarter) we had a little shock and the reaction is more dramatic than it should be, but if we annualise the number, we made 4% [less] than the last quarter only in US dollar term," he added.

The company posted a net profit of RM6.05 million in its 1QFY18, against RM44.9 million previously.

The lower earnings for the period was due to the recognition of foreign exchange losses of RM9.95 million, while revenue fell 11% to RM321.55 million from RM360.25 million.

Chia said the ringgit-US dollar exchange rate based on the current level can allow company to remain profitable.

However, he said the company will not depend on the ringgit factor, but will leverage on its multi-segment market to drive its growth.

"The ringgit between the 3.80 and 4.00 against greenback will be a comfortable level," Chia said.

At noon, the counter close at RM1.84, decline 38 sen or 17.12%, giving it a market capitalisation of RM1.42 billion.