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Global Invacom Q2 profit down 76% on slower satellite equipment orders
GLOBAL Invacom, a mainboard-listed provider of satellite communications equipment, on Friday posted a 76.4 per cent drop in second-quarter net profit to US$0.2 million, down from US$0.9 million a year ago.
These represent net margins of 0.8 per cent and 2.9 per cent respectively. Excluding the write-back of payables amounting to US$0.6 million following the closure of the company’s non-core subcontracting site for the second quarter, net margins would be 0.8% and 1.0%, respectively, said Global Invacom.
Revenue fell 11 per cent to US$26.4 million for the three months ended June 30, on slower orders from key customers in the US, from US$29.9 million for the same period last year, the company said.
Earnings per share decreased to 0.8 Singapore cent, down from 0.32 cent in the previous year.
No dividends have been recommended for the period.
Tony Taylor, executive chairman of Global Invacom, said: “The satellite ground equipment sector is undergoing a once-in-a-decade technological shift, and the company is very well placed to benefit. The innovative products that we are developing such as new slimline products, low-cost LNBs (low-noise block downconverters) and new satellite antennas are in continual demand.
“Our core focus remains to leverage our position in the market to drive sales, and to continue driving R&D, to develop innovative, market leading products that meet customer demands.”
The company has been on the Singapore Exchange’s watch list since June 2018 due to the minimum trading price criterion.