UMS Holdings 558 has reported lower earnings of $15.4 million for the 3QFY2023 ended Sept 30, a 64% decrease from the same period last year.
The group also recorded a lower revenue of $71.3 million, a 29% decrease y-o-y, due to lower sales from both its semiconductor and other businesses, which was partially lifted by better performance from its aerospace business.
Revenue in the semiconductor segment fell 30% as global semiconductor demand remained soft while revenue in its others segment plunged 55% mainly due to the weaker material and tooling distribution business affected by the general business slowdown.
However, revenue in UMS’ gerospace segment grew 35%, buoyed by the sustained recovery of the global aerospace industry.
Compared to 2QFY2023, the group's 3QFY2023 bottom-line improved, indicating an upturn in performance. Net profit rose 25.9% to $15.4 million from $12.3 million in 2QFY2023 and net attributable profit climbed 32.0% to $15.3 million from $11.6 million in the same period.
For the quarter, the group registered $3.5 million operating cash flow, compared to $17.8 million in 3QFY2022, and a free cash flow loss of $6.1 million, compared to its loss of $2.1million in 3QFY2022. The lower net cash from operating activities was caused by some delay in receivables collection, payment of staff bonus and the inventory build-up in preparation for new projects.
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As at Sept 30, UMS’ cash and cash equivalents stood at $36.6 million.
The board is recommending an interim dividend of 1.2 cents for 3QFY2023.
"While global chip demand remains soft and macro-economic challenges persist, there are now signs of an industry rebound,” says Andy Luong, UMS' chairman and CEO.
Compared to 2QFY2023, group sales continued to stabilize in 3QFY2023 while earnings recorded double digit growth, he notes. “Our robust Semiconductor business performance is mainly attributed to our integrated system business, which forms a higher share in the global foundry sector.”
“We are extremely proud of being conferred another prestigious corporate award recently — The Centurion Club Award by The Edge, a leading financial publication in the region. This is the fourth corporate accolade the Group has received since last year,” adds Luong.
Shares in UMS Holdings closed 1 cent or 0.77% down at $1.29 on Nov 10.
