SINGAPORE (May 9): ThumbDrive inventor Trek 2000 International reported a 68% increase in 1Q earnings to US$1.2 million ($1.7 million) from US$0.7 million a year ago.
Revenue rose 27.2% to $41.8 million, led by the group’s Interactive Consumer Solutions (ICS) segment -- which includes cloud-based initiatives and interactive consumer electronics -- and an increase in licensing fees. Accounting 98.5% of the overall revenue for the quarter, the group’s ICS division continues to be the key revenue generator.
Driven by enhanced cost controls and an expansion of WiFi module applications, the group’s gross profit rose 85.9% y-o-y to US$6.7 million. Correspondingly, the group’s gross profit margin improved from 10.9% for 1Q16 to 16.0% for 1Q17.
Looking ahead, the group expects business conditions will continue to be challenging. The group says it will continue to invest and commit into developing new innovative solutions for the future.
Shares of Trek 2000 closed at 19 cents.