SINGAPORE (Nov 3): Serial System, the distributor of electronic components and consumer products, reported a 18% drop in 3Q17 earnings to US$3.1 million ($4.2 million), or 0.35 US cent, from US$3.8 million a year ago despite achieving record quarterly revenue.
The lower bottomline came on the back of lower gross profit margins, reduced earnings from a drop in rebates and commission income from suppliers in the consumer distribution business as well as the as the absence of a US$1.4 million gain in 3Q16 from the partial sale of shares in Korea-listed Unitrontech Co.
Revenue for the three month ended Sept rose 14% to US$395.2 million from a year ago. Revenue from electronic components distribution grew 20% to US$382.1 million, driven largely by higher demand from new and existing customers in Hong Kong, China, South Asia and Taiwan where sales increased between 6% and 36%. South Korea was the only country that reported a 4% drop in sales due to a market slowdown and keen competition.