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UMS Q1 profit falls 12% on unseasonal change in major customer's orders
UMS Holdings' first-quarter net profit fell 12 per cent due to an unusual change in a major customer's normal demand pattern, the semiconductor equipment maker said on Friday.
Net profit decreased to S$7.5 million, or 1.76 Singapore cents per share, for the three months ended March. The company is nevertheless maintaining its quarterly dividend payout of one Singapore cent per share. UMS stock closed at 51 Singapore cents on Friday before the results were announced.
Revenue dropped 20 per cent to S$27.5 million because a major customer did not order as much as it normally did at this time of the year. About 84 per cent, or S$92.6 million, of UMS's revenue in 2014 came from its largest customer.
But UMS, which usually has a stronger first half, said that the major customer expects business activity to pick up in the second half of 2015.
The company said that it expects business activity to remain stable in the coming quarters, citing industry surveys that predict growth for the market. The directors are "confident" of remaining profitable in 2015.