SINGAPORE (Apr 26): Multi-Chem saw its earnings jump 81% to $2.8 million for the 1Q ended March, from $1.5 million a year ago.
1Q18 revenue rose 15% to $112.4 million, from $97.7 million a year ago.
Revenue from the group’s IT division, which accounted for 98% of group revenue in 1Q18, grew 19.7% to $110.2 million on the back of certain big deals closed during the quarter.
The increase was partially offset by a 60.7% decline in revenue from its PCB division to $2.2 million in 1Q18.
This was mainly due to significantly reduced production capacity resulting from the disposal of 103 CNC drilling machines in China last year.
As at end March, cash and cash equivalents stood at $54.3 million.
Looking ahead, the group says the cost of business in its IT division is expected to increase due to the recent increase in US interest rates.
It adds that it will focus on its best-of-breed products and will continue to look out for opportunities for regional expansion.
Shares of Multi-Chem closed half a cent lower at 96 cents on Thursday.
