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CDW posts 31% fall in Q3 profit on fewer customer orders
CONSUMER electronics component manufacturer CDW Holding on Wednesday posted a net profit of US$900,000 for the third quarter ended Sept 30, down 31 per cent from US$1.3 million a year ago on lower revenue from fewer customer orders.
Q3 revenue fell 21.5 per cent to US$23.5 million from US$29.9 million. For the nine months ended Sept 30, CDW made a net loss of US$233,000, compared with a net profit of US$1.9 million in the first nine months of 2017. Revenue decreased 18.5 per cent to US$64.1 million from US$78.6 million.
Regarding the fall in revenue for the year-to-date period, CDW said: "The drop was mainly due to fewer orders attributable to the delay in placing mass production orders for large sized LCD backlight units for more premium vehicles, ultra-thin notebook computers, and an early termination of a game-set device by the end customer of the key customer in the LCD Backlight Units segment."
Its other two main business segments of office automation and LCD parts and accessories both registered higher revenue over the nine months, compared to a year ago. As for its "others" segment, comprising the food and beverage business and life sciences businesses, revenue dropped slightly to US$0.9 million from US$1 million a year ago.
Earnings per share was 0.39 US cent, compared with 0.57 US cent for Q3 2017. For the year-to-date period, loss per share was 0.1 US cent versus earnings per share of 0.82 US cent for the first nine months of 2017.
No dividend was declared for the period under review.
Shares of CDW closed at S$0.19 on Wednesday before results were out, down one Singapore cent.