SINGAPORE (Nov 9): Global Invacom announced that 3Q17 earnings decreased 1.6% to US$ 687,000 ($937,000) compared to US$ 698,000 in 3Q16, ropelled by efficiencies following a restructuring of its China manufacturing operations.
Revenue for the third quarter ended September decreased 11% to US$ 28.5 million from US$ 32.1 million the previous year.
Although it managed to retain key customers in the consolidation of its operations in China, the Contract Manufacturing segment showed a US$3.2 million reduction in sales for this period.
Cost of sales decreased 9.7% to US$ 22.4 million compared to US$ 24.8 million a year ago.
This brought gross profit for 3Q17 to US$ 6.10 million from US$ 7.24 million in 3Q16, driven by lower revenue.
Meanwhile, gross profit margin dropped to 21% in 3Q17 from 22.6% a year ago, which included some high-margin product sales.
The group recorded other income of US$ 0.1 million for 3Q17, which was not registered in the previous year, due to foreign exchange gains.
Finance costs decreased by half to US$ 0.11 million from US$ 0.23 million a year ago.
As at Sept 30, the group’s cash and cash equivalents stood at US$ 8.87 million.
Tony Taylor, executive chairman of Global Invacom says, ““While helping our key satellite broadcasting customers transition to new technology, we will also strive to offer new satellite communication products while further improving operational efficiencies,”
In addition, the group expects to continue deploying DCSS (Digital Channel Stacking)-generation technology across more LNBs (Low Noise Blocks), including those in design and pending approval, for other customers and territories.
Shares in Global Invacom closed at 14 cents on Wednesday.
