AEM Holdings has reported net profit of $13.3 million for the 1QFY2021 ended March, 63.1% lower than net profit of $36.1 million in the corresponding period the year before.

Revenue during the quarter stood 45.4% lower y-o-y at $80.2 million, the second highest since its record revenue of $146.8 million for the 1QFY2020. The figure comprises 67% in revenue from consumables and services, 26% from revenue from tools and machines, and 7% from revenue from contract manufacturing.

The lower y-o-y net profit and revenue this quarter were possibly due to the high base in the same period the year before. To be sure, AEM’s net profit and revenue for the 1QFY2019 stood at $6.6 million and $52.7 million respectively.

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“After an exceptional year in 2020, with the group’s biggest customer ramping up demand on equipment and consumables throughout that year, demand in 1HFY2021 is expected to be lower with a strong recovery in 2HFY2021 through 2022 as our next generation tools are phased into our customer’s High Volume Manufacturing sites globally,” says the group in a statement released on May 3.

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The new tools being delivered in 2HFY2021 and through 2022 are “highly differentiated tools for the high-performance computing segment”.

As at March 31, AEM saw total assets increasing to $440.1 million from $335.5 million in Dec 31, 2020, largely due to the inclusion of CEI Limited.

CEI became a subsidiary of AEM with effect from March 19.

Following the acquisition of CEI, AEM has guided its FY2021 revenue to be between $460 million to $520 million based on the sales order visibility and business outlook.

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As at March 31, cash and cash equivalents stood at $116.1 million.

Looking ahead, AEM says it will continue to expand its presence and “further establish” its leadership in the industry through the development of in-house capabilities as well as through mergers and acquisitions.

It continues to remain “cautiously optimistic about its business and strives to capture new business opportunities” moving forward.

Shares in AEM closed 5 cents lower or 1.2% down at $4.05 on May 3.