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Serial System reports lower 1QFY2022 earnings on allowance for obsolete stocks

The Edge Singapore
The Edge Singapore • 1 min read
Serial System reports lower 1QFY2022 earnings on allowance for obsolete stocks
"We continue to remain optimistic on the demand for chips," says Goh / Photo: Samual Isaac Chua
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Semiconductor distributor Serial System has reported a 1% dip in revenue to US$221.8 million for its 1QFY2022 ended March, due to a shortage prevalent across the industry.

While revenue growth was crimped, the company was able to eke out better gross margins of 8.6 points, up from 7.7 points from 1QFY2021.

However, during the quarter, the company booked an allowance of US$1.2 million on obsolete stocks. It had to bear with higher financing costs and adjust for lower fair value loss on its equity investments.

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