AEM Holdings has reported earnings of $62.4 million for 2HFY2021 up 47.5% from 1HFY2021. However, full year earnings was down 5.6% to $92.1 million over FY2020 because of lower margins.
Revenue for 2HFY2021 was up 52.2% y-o-y to $373.2 million, with contributions from recently acquired CEI.
For the whole of FY2021, revenue was up 9% to $565.5 million, which exceeds the company’s guidance.
For the current FY2022, AEM expects to generate revenue ranging between $670 to $720 million.
The company plans to pay a final dividend of 5 cents per share, which will bring FY2021 total to 7.6 cents. In contrast, it paid a final dividend of 4 cents for FY2020.
AEM expects the demand for its products and solutions to remain strong and the adoption of its new platforms to continue in FY2022 and into FY2023.
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The industry has been witnessing investments and capex spend from the front‐end players.
These developments will lead to additional investments in back‐end test in subsequent quarters.
AEM has also made significant progress in its technical engagements with top tier semiconductor companies and expects meaningful revenue contribution from these engagements in 2H2022 and beyond.
“The semiconductor industry is undergoing a period of rapid pace of change, innovation, with the rapid adoption of new technology amidst the pandemic,” says CEO Chandran Nair, adding that supply chain challenges have persisted in the past year for the industry.
“We will continue to work closely with our suppliers to secure the parts and components and manage the increasingly higher supply chain costs and longer lead time to assure timely shipments and delivery for our customers,” he adds.
Separately, AEM warns that itself and two of its subsidiaries have been filed an arbitration in the US, which, under rules of the arbitral body, JAMS, details are to be "confidential".
US-based JAMS, is formerly known as Judicial Arbitration and Mediation Services, Inc.
According to AEM, citing legal advice sought, the claims "appear to lack factual and/or legal support."
AEM adds that the arbitration is still at an early stage and the claimant has not provided any quantification for its demands for relief.
The company further expects the arbitration hearing to conclude in 2023.
AEM shares, quoted in Singdollars, closed on Feb 24 at $4.03, down 4.05% for the day, and down 23.09% year to date.
