SINGAPORE (May 12): UMS, the provider of equipment manufacturing and engineering services to the semiconductor industry, reported 1Q earnings more than trebled to $11.2 million from a year ago as revenue doubled.
Revenue increased 105% to $41.8 million, led by the semiconductor business segment which surged by 108% to $40.9 million. Sales in the semiconductor integrated system jumped 192% to $24.3 million, while component sales increased by 47% to $16.6 million. Revenue contributions from the Others segment grew 17% to $0.88 million.
Geographically, Singapore continues to account for the bulk or 75% of the group’s revenue base, contributing $31.2 million in the quarter.
UMS says the successful renewal of the group’s contract with its key customer by three years from Jan 2017, with the option for a further three years into 2023 will boost revenue base and earnings visibility.
Andy Luong, Chief Executive Officer of UMS Holdings, said: “The outlook continues to be positive for the global semiconductor sector which has enabled the group to accelerate its growth trajectory in both revenue and profit.”
The group is proposing a 1 cent tax-exempt interim dividend.
Shares of UMS closed at 87 cents on Friday.
