Avi-Tech’s 1Q earnings fall 17% to $1.5 mil on lower forex gains

Avi-Tech’s 1Q earnings fall 17% to $1.5 mil on lower forex gains

By: 
Michelle Zhu
07/11/16, 06:44 pm

SINGAPORE (Nov 7): Avi-Tech Electronics posted a 16.9% fall in 1Q17 earnings to $1.5 million from a year ago, dragged down by lower foreign exchange gains.

Other operating income had also increased by 72.4% to $0.48 million due to the higher interest income generated and gain from disposal of plant and equipment.

Revenue grew 6.3% to $8.5 million in the quarter from $8 million in 1Q16 due to higher revenue of $4.1 million from the group’s burn-in board manufacturing and PCBA services business segment.

The burn-in services and the engineering services business segments reported by a slight decrease in revenue to $2.1 million and $2.3 million respectively.

Gross profit margin decreased to 29.5% in 1Q17 compared to 33.2% in 1Q16, mainly due to lower gross profit margin reported by the burn-in board manufacturing and PCBA services business segment.

Nevertheless, the group says the overall decrease in profit margin was “minimised with ongoing successful planning and implementation of cost control measures”.

As at Sept 30, Avi-Tech’s total group assets grew 3.8% to $52.7 million due to the increase in cash and bank balances of $2.2 million, as well as held-to-maturity financial assets of $0.5 million.

Avi-Tech says it remains positive on its business outlook, and will continue “working towards strengthening its core competencies and exploring new avenues of growth”, which it believes will aid its business and enhance shareholder returns.

Shares of Avi-Tech closed 1.69% higher at 30 cents.

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