Venture Corp’s Q3 net profit falls 4.7% to S$60.6 million

TECHNOLOGY company Venture Corporation reported a 4.7 per cent quarter-on-quarter (qoq) fall in net profit to S$60.6 million for the third quarter of 2024, from S$63.5 million in the previous quarter.

Revenue was down 3.9 per cent qoq at S$689.7 million, from S$717.5 million in Q2. This was largely due to softer demand in the life sciences, lifestyle consumer, and test and measurement instrumentation technology domains, it added.

In a business update on Friday (Nov 8), the group said the lower revenue was partly offset by higher revenue in the networking and communications as well as semiconductor-related equipment technology domains. This was as its “growth initiatives delivered improved performance”.

While the decline in net profit is in line with the lower revenue, the group noted that it had a “robust” net profit margin of 8.8 per cent through its focus on operational efficiency.

Venture Corp did not provide year-on-year comparisons in its Q3 business update, but highlighted that its net cash position had increased by S$138 million from the level as at Dec 31, 2023, to S$1.19 billion for the first nine months of 2024.

This was on top of capital allocations for shareholder returns over the period, including dividend payments and share buybacks, it said.

It also noted that in spite of softer customer demand in Q3, revenue for the second half of 2024 is expected to be “relatively stable” compared to H1 2024.

Venture Corp said it sees “good opportunities on the horizon”, including new design wins and new product introductions for secular growth segments such as life sciences and artificial intelligence data centre-related businesses.

The company will also be onboarding new customers in selected technology domains, and it is currently developing new products with a key customer in the lifestyle consumer technology segment, it said.

Shares of Venture Corp closed at S$13.65 on Friday, up 0.1 per cent or S$0.02, before the announcement.