Ellipsiz declares final and special dividend totalling 6.5 cents

Excluding the one-off items, FY17 earnings would have risen to 10% to $9 million from $8.2 million a year ago.

In FY17, the group recorded provision for impairment loss of $1.5 million on the financial asset and incurred additional professional fee expenses of $0.2 million to manage the mandatory cash offer exercise. The impact of these one-time expenses was partially offset by gain on liquidation of subsidiaries amounted to $0.2 million, gain on disposal of associate of $0.6 million and compensation income of $0.4 million from an insurance claim.

In FY16, the group recorded one-time income from recovery of bad debts of $1.2 million, dividend income from financial assets of $0.7 million, loss on disposal of jointly controlled entity of $0.1 million and impairment loss of $0.4 million on the carrying amount of one of its quoted investment.

Revenue for FY17 fell 2% to $116.7 million from $118.7 million the previous year.

This was due a 2% and 1% decline in revenue for both the group’s Probe Card solutions (PCS) and Distribution & Services solutions (DSS) respectively.

Despite the slight decline in revenue, gross profit for the year was maintained at $42 million, mainly due to the 1% improvement in gross profit margin to 36% in FY17 from 35% in FY16.

The group is recommending final cash dividend of 2 cents a share and a final special cash dividend of 4.5 cents a share.

If approved, total dividend for FY17 would be at 9 cents a share, more than trebled from FY16.

Melvin Chan, CEO of Ellipsiz, says, “The Group remains cautiously optimistic of our business and financial prospects across key markets and will continue to be vigilant of our operating environment, while exploring opportunities for growth.”

Shares in Ellipsiz closed 3 cents higher at 66 cents on Monday.