MAINBOARD-LISTED semiconductor company UMS Holdings reported on Wednesday (May 10) a 10 per cent year-on-year decline in net profit for its first quarter amid slightly lower revenue and higher expenses.

 

Net profit for the three months ended Mar 31, 2023 fell to S$17.4 million from S$19.4 million in the year-ago period. On a per share basis, earnings slipped to S$0.0259 from S$0.0291 in Q1 FY22. The board declared an interim dividend of S$0.01 per share, unchanged from a year earlier.

 

UMS noted that its bottom line was affected mainly by higher expenses and a foreign exchange loss of S$200,000 arising from the weaker US dollar.

 

Revenue for the first quarter fell 5 per cent on-year to S$80.8 million. This came amid lower revenue from its largest semiconductor segment, which fell 1 per cent on year to S$72.9 million.

 

UMS said its semiconductor integrated system sales &ldquo remained strong&rdquo , rising 37 per cent from S$29.9 million in Q1 FY22 to S$40.9 million in Q1 FY23. However, revenue from component sales slid 26 per cent to S$32.0 million in Q 1 FY23, which was mainly attributed to weaker demand from back-end semiconductor customers.

 

Revenue from the &ldquo others&rdquo segment was also lower, falling to S$3.7 million in Q1 FY23 from S$8.4 million in the prior year period. The group&rsquo s aerospace segment grew in the first quarter, with revenue rising 40 per cent on year to S$4.1 million.

 

&ldquo In the face of global economic challenges and a slowing semiconductor industry, UMS remained resilient,&rdquo said chairman and chief executive officer Andy Luong. &ldquo While lower wafer fabrication equipment spending will persist in the coming months, we will focus on managing costs as we strengthen our production capacity in Malaysia.&rdquo

 

Luong added that UMS will be in an &ldquo excellent position to capture new growth opportunities when the global fab equipment demand resumes&rdquo . The group&rsquo s net asset value per share stood at S$0.5354 as at Mar 31, 2023, up from S$0.5089 three months earlier.