SINGAPORE (Nov 7): Trek 2000 International, the inventor and patent owner of the ThumbDrive, saw its earnings climb 24% to US$2.2 million ($3.0 million) in the 3Q ended September, from US$1.8 million a year ago.
This was largely due to lower research and development (R&D) as well as administrative expenses.
R&D expenses decreased 37.5% to US$0.5 million in 3Q17 due to a decrease in staff and patent maintenance costs, while administrative expenses fell 44.9% to US$0.9 million on lower professional fees, depreciation, and staff-related costs.
Revenue fell 33.4% to US$28.8 million in 3Q17, mainly due to the disposal of Racer Technology in March 2017.
Gross profit declined by 3.6% to US$4.6 million on the back of an improved gross profit margin, which increased by 5.0 percentage points to 16.1%.
This was due to an improved product mix with a focus on higher margin products, as well as tightening of cost controls related to cost of goods sold.
As at end September, cash and cash equivalents stood at US$33.6 million.
“In a rapidly evolving technological landscape, we are working tirelessly to position the group for the future,” says Henn Tan, executive chairman and CEO of Trek 2000. “Heading into the remainder of the year, we are confident in our ability to execute our growth strategies.”
“By leveraging on our history of R&D capabilities and a track record of innovative solutions, our core ICS (interactive consumer solutions) division continues its growth momentum as we seek to develop disruptive technologies within consumer wearable, medical and cloud technologies,” he adds.
Shares of Trek 2000 closed 1 cent higher at 27 cents on Tuesday.
