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Excelpoint Technology reports 61.6% rise in Q1 earnings
ELECTRONICS components distributor Excelpoint Technology reported a 61.6 per cent rise in net profit, coming in at US$1.4 million for the first three months of financial year 2017 when compared to a year ago.
Group revenue increased by 26.5 per cent from US$205.7 million to US$260.3 million. This was attributed to higher sales from the Hong Kong and Singapore business units, the Singapore-based mainboard-listed company said in a filing after market close on Wednesday.
Cost of sales rose by 27.4 per cent from US$193.8 million to US$246.9 million. Sales and distribution costs remained relatively stable, increasing by only about 0.4 per cent to US$6.8 million.
General and administrative expenses rose by 6.9 per cent to US$3.9 million as staff costs and rental costs increased.
Higher interest rates and increase in working capital requirements prompted a 66.4 per cent jump in interest expenses to US$837,000.
The group said that infrastructure developments will continue to be a key contributor to its growth.
Geopolitical uncertainties, however, will continue to pose challenges, but the group will "stay focused on delivering business growth".
Its counter closed flat on Wednesday at S$0.62.