Serial System announced that its 3QFY2021 ended September recorded earnings of US$3.4 million, reversing from a loss of US$0.4 million in the same period a year ago.
This came on the back of a 13% y-o-y increase in sales to US$229.4 million from US$204.5 million a year ago, amid higher demand for semiconductors, particularly in China. Globally, the shortage of chips and related supply chain disruptions had affected manufacturing activity, which in turn led to some firms rushing to stockpile high-demand chips.
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This brings gross profit to US$19.4 million, 45% higher y-o-y, as gross profit margin saw a 1.9 percentage point increase to 8.5% from 6.6% previously.
Overall, the group attributed its higher top and bottom lines to improved performance in most of its business segments, supported by growth strategies to widen its supplier and customer base.
Dr Derek Goh, Serial System’s CEO says, “It has been more than a year after Serial System embarked on strategies to streamline operations, diversify its supplier base and product portfolio to respond to the challenges of the ‘tech-war’ and the pandemic. We are experiencing a clear recovery, as reflected by our performance in the latest quarter.”
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“We continue to accelerate these strategies. Amid the ongoing supply chain disruptions, our value proposition as a trusted distributor for electronic components as well as consumer products has increased. We are adding more customers and suppliers and deepening these relationships amid a challenging environment,” he adds.
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Shares in Serial System closed at 12 cents on Nov 3.
Photo: The Edge Singapore
