SINGAPORE (Feb 24): Venture Corporation, the global provider of technology solutions, products and services, reported a 0.7% dip in FY18 earnings to $370.1 million from a year ago.
Excluding a one-off gain of $11.3 million from the disposal of an investment in an associate recorded in FY17, earnings for FY18 would have registered an increase of 2.4% year-on-year.
FY18 revenue came in at $3.48 billion, 13% lower y-o-y.
For the 4Q18 ended Dec, Venture recorded earnings of $107.7 million, 24.7% lower y-o-y.
4Q18 revenue fell 16.6% to $905.9 million mainly attributable to the impact arising from customers’ product transitions and customers’ M&A activities. Revenue for 4Q18 grew 17.6% against prior quarter with stronger demand from customers.
For FY18, the group generated cash from operations of $311.5 million. As at Dec 31 2018, the group had $712.8 million of cash and bank balances.
Venture has recommended a final dividend of 50 cents per share on a one-tier tax-exempt basis for FY18. Including the interim dividend of 20 cents per share paid in September 2018, total dividend for FY18 will amount to 70 cents per share, representing a 16.7% increase over the prior year.
Following its sequential revenue growth in 4Q18, Venture expects its broad-based portfolio of technology domains and continued success in its partners’ new product launches to drive revenue growth.
In addition, increased interest from businesses looking to relocate production to Southeast Asia due to the US-China trade war could also present new business opportunities for the group.
Meanwhile, Venture remains alert to respond to any development in the global economy that may introduce new uncertainties to the operating environment.
Shares in Venture closed at $16.12 on Friday, down 41.6% from $27.60 in Feb 26 2018.
