SINGAPORE (Aug 8): Trek 2000 International, the inventor of the Thumbdrive, posted a 78.7% increase in its 2Q17 earnings to US$2.1 million ($2.9 million) compared to US$1.2 million in 2Q16.
The group however saw a 38.8% y-o-y decline in its revenue from US$48.8 million in 2Q16 to US$29.8 million in 2Q17.
This was due to a decline in sales from its Interactive Consumer Solutions division and its disposal of its 19% interest in Racer Technology, a subsidiary of the company.
Following the disposal of Racer Technology, the group streamlined its operations and adopt cost containment measures, focusing on its core business to improve product mix for a greater concentration of higher margin products.
This translated to a 59.3% increase in gross profit from US$3.6 million in 2Q16 to US$5.7 million in this second quarter ended June, while its gross profit margin increased 11.7ppt from 7.3% to 19%.
The group’s marketing and distribution expenses increased to US$1.5 million for 2Q17 compared to US$0.4 million for 2Q16.
This along with an increase in staff costs is due to the group carrying out marketing initiatives while preparing for new product launches to capture the prevailing industry trends despite a competitive landscape.
Henn Tan, Executive Chairman and CEO of Trek 2000 International, says, “Looking ahead, the global Internet of Things (IoT) market continues its high-growth trajectory, with global IoT spending forecasted to reach just over US$800 billion in 2017. Against this backdrop, we are committed to executing our strategy of further penetrating into consumer wearable, medical and cloud technologies.”
Shares in Trek last traded at 18.6 cents.
