Excelpoint's Q1 net profit up 18 times to US$4.4m

ELECTRONICS component distributor Excelpoint Technology posted a net profit of US$4.4 million for the first quarter ended March 31, about 19 times its net profit in the corresponding quarter the year before.

The group enjoyed higher demand for semiconductors on the back of accelerated technology adoption. Revenue climbed 32.9 per cent to US$336.3 million, mainly due to higher sales in Singapore and Hong Kong.

Gross profit rose 80.2 per cent to US$23.4 million.

Operating costs increased mainly due to higher staff cost and higher travelling expenses due to partial resumption of business travel, the group said.

Earnings per share was 3.66 US cents, compared with 0.19 cents the year before.

Excelpoint said business momentum has seen recovery, especially in China, which will remain the key market for growth.

The group recently set up an innovation centre in response to the rising opportunities to develop solutions in Artificial Intelligence and the Internet of Things. Excelpoint said this will enable it to give more value-add to its partners and sharpen its competitive edge.

The counter closed at S$0.63 on Tuesday, down 1 cent of 1.56 per cent.