SINGAPORE (March 29): Trek 2000 International, the technology company that owns the patent to the ThumbDrive, posted US$6.1 million ($8.5 million) in earnings for the year ended Dec 2016, compared to losses of US$6.6 million in FY15.

Revenue grew 11.4% to US$165.7 million from US$148.8 million in the previous year, driven by the group’s Interactive Consumer Solutions (ICS) division which accounted for 98.4% of the overall revenue.

In a filing to the SGX Tuesday evening, Trek 2000 says its 373.9% y-o-y surge in gross profit to US$19.3 million, along a 9 percentage point expansion in gross profit margin to 11.7% during the financial year, was backed by effective cost containment measures and higher sales of expanded Wi-Fi and IoT module applications.

It adds that over the course of the year, the group has made a conscious effort to tighten its cost controls – which translated to a 21.7% y-o-y decrease in marketing and distribution activities from US$3.7 million in FY15 to US$2.5 million in FY16.

Research and development (R&D) expenses fell 21% to US$2.9 million in FY16 compared to US$3.7 million the year before. The decrease was mainly due to a decrease in intangible assets written off, as well as amortisation expense of intangible assets in FY16.

General administrative expenses, however, grew by 5.2% to US$6.2 million from US$.5.9 million previously, due to an increase in professional fees and a decrease in property, plant and equipment written off.

Other expenses also more than doubled to US$0.9 million from US$0.4 million in the previous financial year, mainly due to provision made for potential claims by a customer.

Overall, Trek 2000 notes that its robust core business operations generated US$9.1 million of positive operating cash flow for FY16, which was supported by an improved working capital cycle where inventory turnover improved to 26 days as compared to 57 days in FY16.

“As we remain vigilant to business headwinds, we will utilise our strong cash position to pursue R&D initiatives and unveil new innovative solutions to the market,” notes Henn Tan, executive chairman and CEO of the group.

“At present, our asset-light operating model and portfolio of patented products has positioned us to ride the technological revolution in an Internet of Things (“IoT”) market… In addition, rapid growth in the demand for NAND flash memory products is expected going forward. Against this backdrop, our engineers push the barrier for technological advancement on a daily basis as we pursue the most disruptive of innovations that will transform the way we live and interact.”

Trading in Trek 2000’s shares have been suspended since April 2016 when its auditors lodged a report with the Accounting and Corporate Regulatory Authority (ACRA) related to documentation deficiencies.

The companiy went on to appoint external professional firms to conduct an independent review on the inconsistencies in accounting records and certain transactions. It also previously announced that the Commercial Affairs Department (CAD) was conducting an investigation into the affairs of the company. The CAD investigations were still ongoing.