Trek 2000 in the red for FY2015 despite revenue rise

Singapore

WEIGHED down by a sharp rise in the cost of goods sold and other expenses, Trek 2000 International sank into the red with a net loss of US$6.72 million for FY2015 versus a net profit of US$1.15 million. Revenue rose 34.5 per cent year to US$149.14 million, driven by higher revenue from its main interactive consumer solutions (ICS) business. Its ICS business saw a 95 per cent jump in revenue to US$141.5 million for FY2015 thanks to higher sales of in-house solutions and Wi-Fi memory modules. Loss per share worked out to 2.18 US cents.

Cost of goods sold surged nearly 47 per cent to US$145.16 million, causing gross profit to slump 66.5 per cent to US$3.98 million. Gross profit margin dived from 10.7 per cent to 2.7 per cent owing to the writedown of inventories and obsolescense amounting to US$5.4 million as well as the reclassification of R&D expenses to cost of goods sold worth US$2.5 million. Trek said: "The group's key focus going forward lies in the medical technology industry, where an ageing population brings about a need for new and innovative solutions within healthcare to tackle the upcoming challenges."