KUALA LUMPUR (March 10): Chip-testing company KESM Industries Bhd’s net profit nearly quadrupled to RM1.86 million or 4.34 sen per share in its second quarter ended Jan 31, 2020 (2QFY20), from RM474,000 or 1.1 sen per share a year ago.

However, revenue for the quarter fell 16.05% to RM68.08 million, versus RM81.11 million a year earlier, KESM said in a bourse filing.

The group attributed this to lower demand for burn-in and testing services, as well as electronic manufacturing services.

Net profit for the first half of FY20 (1HFY20) doubled to RM6.39 million from RM3.12 million in the previous corresponding period.

Meanwhile, revenue in 1HFY20 was down 13.64% to RM140.47 million, from RM162.66 million previously.

In a separate statement, executive chairman and group chief executive officer Sam Lim said: “In order to counter the weaker market environment, we acted swiftly in focusing on cost management, in terms of production costs and supply expenses to improve our profitability.”

“We entered the second half of FY20 with a jolt to the implications of Covid-19, which has disrupted our production in China. Nevertheless, we are focusing our efforts [on catching] up on customers’ expanded production backlogs as well as to ensure the safety and wellbeing of all our employees and business associates,” Lim added.

Shares of KESM rose 11 sen or 1.4% to close at RM8.06, giving the group a market capitalisation of RM346.7 million.