Key Asic Bhd expects to return to profitability next year

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KUALA LUMPUR (Nov 6): Key Asic Bhd, which has been loss-making for the past three financial years, expects to return to the black amidst of the positive outlook of the worldwide semiconductor industry.

However, the fabless chip design company said it may continue to be loss makng in the current financial year, said its chairmain Kay-Yee Eg.

"But we are trying our best to narrow down the losses," said its Eg.

Eg said the main earnings driver would be the new internet-enabled chipset that the company is currently producing.

The company had been injected USD20 to USD30 miilion to explore the chipsets over the past three years, he said.

"The chipset can be used in any devices that enable users to transfer their documents wirelessly to a third party wherever they are.

According to him, the chipset which was launched last year has received positive response from industry players.

"We have shipped over one million units chipset to our clients to produce wifi SD card alone in last year," he said, expecting the demand for the technology continue to booming.

"The company's revenue will continue to grow with the leading SD WiFi enable chip, he told reporters after.chairing the extraordinary general meeting (EGM) today.

Apart from that, Key Asic is working on several customer made with advanced semiconductor technology at present, those chips will contribute remarkable revenue for the whole year of 2015. 

"In addition, we will be launching our USB wifi drive in second quarter next year," he said, adding that it will further boost up the company's earnings.

"The USB wifi drive will come with a cloud storage, which enable users to store their files on the net," he added.

To recap, for the six months ended June 30, the company incurred a net loss of RM4.6 million on 2.39 million revenue.

In contrast, Key Asic’s unaudited accumulated losses of RM75.691 million at the company level as at June 30.

The counter was not traded today, its last closing price was at 8sen.