SINGAPORE (Feb 26): The Covid-19 outbreak has caused disruption in the operations of many electronics manufacturers, but UMS Holdings is seen to be able to brave through the storm.

For 4QFY2019 ended December, UMS reported earnings of $9.2 million, some 4% lower than earnings of $9.4 million a year ago. The 56% surge in revenue to $40.4 million was insufficient in combating the fall in the group’s overall gross material margins to 51.1% from 60.9% last year. As a result, full-year earnings fell 22% y-o-y to $33.2 million. 

The fall in margins was due to a shift in product mix which saw a higher concentration in semiconductor system integrated sales. This had resulted in lower margins compared to the previous year’s mix which had a higher concentration of component sales. 

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