Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 16): Elsoft Research Bhd's second quarter top line and bottom line nearly halved on lower demand for the group's automated test equipment (ATE).

Net profit for the quarter ended June 30, 2019 declined 47.65% to RM6.29 million, from RM12.01 million a year earlier.

Earnings per share dropped to 0.94 sen from 1.81 sen, the group said in a filing with Bursa Malaysia.

Quarterly revenue, meanwhile, fell 48.94% to RM12.33 million from RM24.15 million.

The group declared an interim dividend of one sen a share, against 1.25 sen a year ago, bringing the total payout for the first half of the year to two sen a share, compared with 2.08 sen in the corresponding period last year.

The group said its lower revenue followed lower demand for its ATE. While its earnings were directly affected by its lower revenue, the group remarked that its investment income slightly mitigated the impact from the drop in revenue.

Elsoft said the net profit for the first half of the year was down 44.39% to RM11.18 million, from RM20.10 million in the year-ago first half.

Revenue for the period saw a similar decline of 44.78% to RM22.22 million, from RM40.64 million previously.

"The group experienced [weakened] demand for ATE for the first half of 2019. The board and the management expect the situation will remain challenging until the end of the year.

"Despite the market uncertainties, the group will continue to focus on its R&D activities for new product development," Elsoft said.

Elsoft's share price eased by half a sen or 0.56% to close at 89 sen today, valuing the group at RM594.58 million.

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