Gtronics: Its net profit dropped 55% to RM9.15 million or 3.25 sen per share in the third quarter ended Sept 30, 2016 (3QFY16) from RM20.49 million or 7.28 sen per share in 3QFY15, as it saw lower year-on-year sales and recognised a foreign exchange (forex) loss.
Revenue for the quarter fell 40% to RM52.46 million from RM88.71 million in the previous year. Sales from both its Malaysia and Singapore segments were lower year-on-year.
The lower revenue and net profit achieved in the quarter [were] mainly due to lower volume loadings from some of the group's customers as a result of reduction in end customers' demand and forex loss recognised amounting to RM3.03 million.
For the cumulative nine months to Sept 30 (9MFY16), net profit plunged 65% year-on-year to RM19.35 million or 6.87 sen per share from RM55.57 million or 19.76 sen per share, while revenue fell 37% to RM168.61 million from RM266.43 million.
Going forward, Globetronics expects similar performance in the following quarter, with business and product loading to gradually recover in the financial year ending Dec 31, 2017 (FY17).
The group will continue to focus on escalating up the value chain and riding on the R&D initiatives in new products design and development with its key customer. This initiative is expected to result in the manufacturing of new products in year 2017.