SINGAPORE (Aug 11): UMS Holdings, the provider of equipment manufacturing and engineering services in the semiconductor industry, reported 1H17 earnings more than doubled to $22.7 million from $9.8 million a year ago on robust growth of the group's semiconductor business.
The group is proposing a special bonus issue of up to 107.3 million new shares of the company on the basis of one bonus share for every four shares held by shareholders as well as a one cent tax-exempt interim dividend.
Revenue for the six months ended June, rose 92% to $84.5 million from $44 million. Sales in Singapore leapt by 149% compared to 1H16 mainly due to strong demand for semiconductor integrated system sales. Sales in US also jumped 67%, driven by higher component sales for new system built.
According to SEMI’s mid-year forecast, worldwide sales of new semiconductor manufacturing equipment are projected to increase 19.8% to total $49.4 billion in 2017, hitting a new record as this figure has exceeded the market high of $47.7 billion set in 2000.
Andy Luong, CEO of UMS holdings, says: “ We will continue to reap the gains from the robust global semiconductor industry. Our half year results reflect our strong capabilities to meet the increased customer demand for high precision semiconductor equipment. ”
While the group's prospects remain positive, the group expects its major customer’s demand moderating in the second half of the year. The new terms of its renewed system integration contract announced earlier this year, which will have a lower average selling price, will also take effect in the near future.
Barring unforeseen circumstances, the group expects FY17 to remain profitable.
Shares in UMS closed 1 cent lower at $1.08 on Friday.
