UMS Integration has reported earnings of $10.4 million for its 3QFY2024 ended September, down 32% y-o-y.
Revenue fell 9% y-o-y to $64.9 million although sales have resumed quarterly growth since 1QFY2024.
UMS’s semiconductor segment sales fell 13% y-o-y due to weaker global chip demand while revenue in “others” declined 22% y-o-y as its material and tooling distribution business was affected by the general business slowdown.
On a y-o-y basis, all the company’s key geographical markets — except Malaysia and US — posted lower revenue in 3QFY2024. Malaysia was the star performer, reporting a sales surge of 130% mainly due to the commencement of business with the new major customer.
Despite higher costs and challenging market conditions, the company was able to grow its gross margins and profits q-o-q, with group pre-tax and net attributable profit at double-digit improvements, rising 13.7% and 11.5% respectively, says UMS chairman and CEO Andy Luong.
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“In the current quarter under review, the group registered $16.8 million positive net cash from operating activities and a positive $8.8 million free cash flow in 3QFY2024,” he adds.
UMS maintains its interim dividend of 1 cent for 3QFY2024, bringing its total dividend payout to shareholders to 3.2 cents for the 9M2024.
Barring unforeseen circumstances, UMS expects to remain profitable in FY2024.
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Shares in UMS closed 2 cents higher or 2% up on Nov 8 at $1.04.
