SINGAPORE (Feb 21): Shares of Global Testing Corp are up 16 cents or 14.9% to $1.235 at 10.33am on better results and dividend proposed.

On Monday night, the provider of semiconductor testing services reported a 65.2% rise in 4Q earnings to US$0.63 million ($0.9 million) from US$0.39 million on higher sales.

Revenue for the three months to Dec closed 4.4% higher at US$7.5 million due to higher customer orders.

Cost of sales during the quarter increased 10% to US$5.5 million due to the increased in purchase cost.

For the FY16 ended Dec, revenue decreased by 6.6% to US$30.9 million, mainly due to the decrease in customer orders.

Cost of sales for the full year decreased 9.8% to US$21.1 million, mainly due to the decrease in depreciation expense.

Earnings therefore rose 1.2% to US$3.7 million.

In its outlook, Global Testing says worldwide PC shipments declined 6.2% y-o-y while the Chinese smartphone market also recorded lower sales volume of 3.75 billion units in 2016, compared to 4 billion units last year.

“This has largely weighed on business spending globally, further dampening demand for electronics and semiconductors, correspondingly,” says the group.

Still, the group expects to be profitable for the next quarter, underpinned by its cost rationalisation measures.

The group has proposed a final dividend of 10 cents per share each. This is on top of the interim dividend of 10 cents paid out in Sept.