Manufacturer Grand Venture Technology
Revenue for the period also fell 13.4% to $28.5 million, with a decrease in business activity in GVT’s back-end semiconductor and electronics segments year-to-date.
As a result, gross profit decreased by 22.9% to $6.6 million while gross profit margin lost 2.9 percentage points, falling to 23.0% in 3QFY2023.
The ongoing absorption of expanded capacities and capabilities also contributed to the decline in gross profit and margins.
The company says that while the global semiconductor and electronics industry downturn looks to be bottoming out, it expects headwinds to continue for the rest of 2023.
However, GVT is cautiously optimistic of a gradual improvement in operating conditions from 2024, with a more pronounced uptick in the second half of 2024 to be driven by global semiconductor demand for innovations in artificial intelligence and high-performance computing, and the need for inventory replenishment.
See also: Trump wins Republican nomination, setting up rematch with Biden
The company’s facility in Penang, Malaysia, which will be dedicated to front-end semiconductor activities, is expected to be operationally ready by the end of the year, in preparation for a pick-up in order momentum next year.
Meanwhile, GVT continues to work closely with its new back-end semiconductor customer on first article inspections and qualifications.
For its life sciences business, the company has commenced work internally to develop capabilities in the area of advanced materials in order to carry out new projects. GVT adds that it is also actively capitalising on the recovery of the global aviation industry to secure new orders and expand its customer wallet share in the aerospace segment.
GVT shares closed unchanged at 49.5 cents on Nov 15.
