KUALA LUMPUR (April 24): Semiconductor manufacturer Unisem (M) Bhd's net profit slumped 87% in the first quarter of its financial year 2018, due to a weaker US dollar against the ringgit, and lower profit margins arising from a change in product mix.

Also contributing to the lower earnings for the period was the recognition of foreign exchange losses of RM9.95 million, Unisem said in its quarterly results filing today.

The group posted a net profit of RM6.05 million in its 1QFY18 ended March 31, versus RM44.9 million a year ago, while revenue retreated 11% to RM321.55 million from RM360.25 million — again mainly because of the depreciation of the USD/MYR exchange rate.

"USA and Asia segments recorded decreases in revenue of 3.5% and 21.8% respectively, whilst Europe's segment revenue increased by 2.4%," it noted.

Unisem's directors expect the performance of the group to improve in its second financial quarter and remain satisfactory till the end of the financial year.

Unisem shares closed 7 sen or 3.06% lower at RM2.22 today, after 4.12 million shares were done, giving it a market capitalisation of RM1.63 billion.