Friday 29 Mar 2024
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KUALA LUMPUR (Feb 7): Aemulus Holdings Bhd has slipped into the red with a net loss of RM4.77 million in the first quarter ended Sept 30, 2023 (1QFY2023), compared to a net profit of RM4.53 million a year earlier, dragged down by lower revenue.

The company posted a loss per share of 0.75 sen, against earnings per share of 0.73 sen for 1QFY2022, the automated test equipment (ATE) maker's bourse filing showed.

Quarterly revenue dropped 47% to RM9.85 million from RM18.58 million a year before, which the company attributed to cautious capital expenditure spending from customers who foresee a slowdown in the semiconductor industry, and deferment of delivery due to slowdown in customers’ expansion pace.

Aemulus' other expenses during the quarter increased by RM1.93 million compared with 1QFY2022, mainly due to the strengthening of the ringgit against the US dollar and yuan.

On prospects, Aemulus said capital spending by its customers has reduced significantly and the market is expected to take a breather for a period of  three to six months.

“In view of that, our cash flow control and management which we highlighted last quarter have delivered positive results. We have reduced our inventory and we expect to reduce it further next quarter,” it said.

Aemulus said it will crank up business development activities in the automotive market in the coming quarters. Despite observed delays in customer projects, the overall business landscape remains positive, it added.

For the PC market, which has declined at the start of 2023, the company is still hopeful that the network processor segment which contributes to its enterprise storage market will be able to grow further, if not hold its current demand position.

It added that the smartphone and tablet market has declined sharply and will continue to do so in the next few quarters.

“This may give short term impact to us but we expect a recovery within three to six months. The easing in travelling and quarantine restrictions in China shall help in such recovery,” the company said.

Aemulus' share price closed down two sen or 4.21% at 45.5 sen on Tuesday, giving the company a market capitalisation of RM304 million.

Edited ByS Kanagaraju
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