SEMICONDUCTOR manufacturer UMS Integration on Friday (Nov 8) reported a 32 per cent decline in profit to S$10.4 million for the three months ended Sep 30, from S$15.3 million in the same period a year prior.
Earnings per share for the quarter was S$0.0146, compared with S$0.0229 year on year.
The fall in profit was from higher expenses and depreciation for the period under review, including an increase in legal and professional fees due to the group’s planned secondary listing in Malaysia and the upkeep of property and machinery.
The group also incurred a foreign exchange loss, compared with a foreign exchange gain in the corresponding quarter a year ago, which was partially offset by a gain from the disposal of fixed assets. The foreign exchange loss was caused largely by the US dollar depreciation.
The group has declared an interim dividend of S$0.01 per share, lower than the S$0.012 per share declared a year ago. It will be paid on Dec 16.
Revenue for the third quarter slid 9 per cent on year to S$64.9 million, from S$71.3 million. This was due to lower semiconductor sales from weaker global chip demand, as well as a decline in revenue from the “others” segment as material and tooling distribution was affected by a general business slowdown.
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“Lower integrated system and component sales resulted in the group’s semiconductor segment’s revenue decline,” said UMS Integration.
On a quarter-on-quarter basis, however, revenue rose 16.1 per cent to S$56 million. The group’s semiconductor sales also jumped 19 per cent on the back of higher integrated system shipments.
Sales have resumed quarterly growth since the first quarter of FY2024, noted UMS Integration.
Revenue from the “others” segment however remained soft, slumping 30 per cent, on a quarter-on-quarter basis.
Commenting on the results, the group said that it managed to secure more orders from a new major customer in Malaysia, with new product introductions planned in the coming months. It also noted that the outlook for the semiconductor industry “appears to be promising”.
Shares of UMS Integration finished up 2 per cent or S$0.02 at S$1.04, before the results release.
