KUALA LUMPUR (May 23): Lower revenue, changes in product mix, and higher depreciation costs weighed on the net profit of Inari Amertron Bhd in the third quarter ended March 31, pulling it down 31% year-on-year to RM38.19 million from RM55.17 million before.

Earnings per share fell to 1.2 sen from 1.76 sen previously.

Revenue fell 21% to RM256.32 million against RM325.83 million in the same quarter last year, the chip maker attributing the reduction to lower volume loading on a major sensor product and also due in part to the disposal of assets of a 51%-owned subsidiary during the last financial year.

The group declared a third interim dividend of one sen per share, payable on July 5.

For the cumulative nine months, net profit amounted to RM153.43 million, a fifth less than the same period last year, as revenue also tumbled 18% to RM882.19 million from RM1.07 billion before.

For the remainder of FY2019 and barring unforeseen circumstances, the group said it expects to post a similar performance as the current year-to-date period.

“Looking forward, using guidance from the group’s current customer forecasts, the business for first half of FY2020 is expected to recover,” Inari said in a bourse filing today.

“However, the short term outlook is clouded by geo-political events like the on-going USA-China trade war and Brexit. In the event no major fallout happens, the group can look forward to higher volumes for our existing and new products for FY2020.”

At market close Inari ended eight sen or 5.71% lower to RM1.32, for a market value of RM4.19 billion.