SINGAPORE (Aug 10): Memtech International, the global components solution provider, reported earnings of US$4.9 million ($6.7 million) for 2Q17, reversing from the loss of US$1.4 million posted in the same period a year ago.
In a Thursday filing, Memtech says its improved performance in the current quarter was largely attributable to the successful execution of scheduled orders from major customers.
Revenue over the quarter grew 20.1% to US$37.8 million from US$31.4 million on the back of an increase in sales in the consumer electronics segment, whose contribution grew to 37% of total revenue from 29.7% a year ago.
As such, gross profit spiked 143.3% to US$6.5 million from US$2.7 million in 2Q16, with gross profit margin improving to 17.3% in the current quarter from 8.6% a year ago.
Other operating income grew to US$3.7 million from just US$0.3 million a year ago with the completion of Memtech’s sale of its Huzhou land and factory over the quarter.
Meanwhile, sales and marketing expenses fell 12.4% to US$1.7 million from US$1.9 million previously due to better cost control.
General and administration expenses however grew 11% to US$2.9 million due to higher bad-debt provisions.
As at end June, the group’s cash and cash equivalents amounted to US$32.1 million, or 22.8 US cents per share.
Looking ahead, the group says it will maintain its efforts to improve productivity and cost management on various fronts including utilising more automation in its production processes, as well as seek to expand and deepen business relationships with key customers and pursue new opportunities within the automotive & consumer electronics segments.
The group is anticipating market conditions to remain challenging, driven by an uncertain economic and political environments, but nonetheless says it remains cautiously optimistic of its performance for the remainder of the year.
Shares of Memtech closed 0.5% higher at $1.04 on Thursday.
