KUALA LUMPUR (Oct 25): Unisem (M) Bhd incurred a net loss of RM3.21 million for the third quarter ended Sept 30, 2019 (3QFY19), versus a net profit of RM35.15 million a year ago, due to expenses arising from the closure of its Batam unit, PT Unisem.

This is the group's first quarterly loss since 2013. Consequently, Unisem recorded a loss per share of 0.44 sen during the quarter, versus an earnings per share of 4.83 sen in 3QFY18, according to its Bursa Malaysia filing today.

Notwithstanding the weaker results, the group recommended a second interim dividend of two sen, same as 3QFY18's, to be paid on Jan 10 next year, with the ex-date falling on Dec 20 this year.

Unisem said its losses during the quarter were due to net expenses incurred for staff severance, and the reversal of retirement benefits in PT Unisem. In addition, there was a higher recognition of deferred tax expense due to the reversal of retirement benefits in the Indonesian operation. Lower gain on foreign exchange also impacted its performance during the quarter, it said.

The group also faced lower sales volume, which dragged its revenue down 10.8% to RM316.32 million, from RM354.71 million a year ago.

Due to these same reasons, its nine-month (9MFY19) net profit shrunk by 76% to RM17.31 million from RM72.34 million in 9MFY18, while revenue dropped 8.6% to RM931.37 million from RM1.02 billion.

Moving forward, Unisem said its directors expect further provisions and impairments in relation to the planned closure of its operation at PT Unisem, and that the group's performance for the remainder of FY19 will remain challenging.

Unisem shares closed nine sen or 3.4% lower at RM2.56 today, giving it a market capitalisation of RM1.86 billion.