AEM Holdings AWX has announced a net profit of $15.6 million for its 1QFY2023 ended March 31, a 61.8% drop from its net profit of $40.8 million in the same period last year.
Revenue for the period also fell to $152.7 million, down 41.7% compared to $261.9 million in 1QFY2022.
The company’s net profit margin also slid to 10.2% in 1QFY2023, down 5.4 percentage points from the 15.6% posted in 1QFY2022.
Cash and cash equivalents as at March 31 decreased to $110.1 million compared to $127.8 million at the end of 4QFY2022 mainly due to changes in working capital.
In AEM’s press release, the company notes that the exceptionally high revenue in 1QFY2022 was due to the volume ramp up to support its key customer’s new platforms which began to taper off in 3QFY2022.
The completion of this volume ramp, coupled with the overall slow-down in the semiconductor industry resulted in the decrease in both 1QFY2023 revenue and net profit, says AEM.
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AEM says its visibility remains “limited” as it enters the second half of 2023, but that there is the “flickering of positive signs” across the industry. Inventory levels are reducing, and inventory corrections are expected to conclude in late 2023, early 2024, says the company.
CEO Chandran Nair says: “Given the expected decline in testing equipment spending this year, we are taking proactive steps to lower operating costs and to drive operational efficiency, while doubling down investments in engineering and R&D in critical areas.”
He adds: “Our engagement with our new customers is progressing as planned. As we navigate short-term headwinds, we are accelerating our development of Test 2.0 solutions that will be our key driver of growth in the coming years.”
Shares in AEM closed unchanged at $3.45 on May 11.
