Micro-Mechanics posts 63% fall in Q3 profit to S$1.6 million
Benjamin Cher
MICRO-MECHANICS on Friday (Apr 28) reported a 63 per cent fall in profit for Q3 FY2023 to S$1.6 million, from S$4.4 million in Q3 FY2022.
Revenue for the quarter fell 24.2 per cent to S$14.9 million, from S$19.7 million the year prior. The fall in revenue reflects the cyclically slower conditions in the global semiconductor industry, the precision tools and parts manufacturer said.
Global semiconductor sales for January and February 2023 have shown a decline of about 20 per cent from the same period last year, according to data from World Semiconductor Trade Statistics.
“The cyclical downturn has resulted in challenging business conditions for companies that operate in the semiconductor industry,” said Chris Borch, chief executive officer, Micro-Mechanics.
The global semiconductor market is expected to slow until excesses and supply-demand imbalances ease. In addition, the business environment will remain challenging in light of economic and geopolitical concerns.
Borch said Micro-Mechanics will focus on the industry’s long-term fundamentals and not on short-term valuations.
“To that end, we intend to stay focused on various fundamentals and continue executing key progress initiatives which, in the long term, will make Micro-Mechanics a stronger competitor in the industry,” he said.
Shares of Micro-Mechanics closed 1.9 per cent or S$0.04 higher at S$2.10 on Friday.
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