One-off retirement payouts eat into Ellipsiz FY2018 results
Singapore
THE trade spat between Washington and Beijing has left electronics company Ellipsiz "cautiously optimistic" of its prospects, despite the worldwide growth projected in the semiconductor and contract manufacturing industry, it said in its latest financial statements on Monday.
Ellipsiz posted a net profit of S$9.1 million for the 12 months to June 30, up by 7 per cent on the same period the previous year, while revenue rose by 18 per cent to S$49.1 million on the back of a stronger distribution and services solutions showing in Singapore, mainland China and Taiwan.
Contributions from discontinued operations bolstered the bottom line, amid both fair value and exchange losses, and one-off retirement payouts to the group's former chief executive and former chief financial officer.
Higher costs drove continuing operations into the red to the tune of S$4.8 million, against a profit of S$166,000 the year before, but earnings from discontinued operations propped up overall profit for the year.
The group completed the sale of its probe card solutions arm, SV Probe, for US$70 million in October 2017.
"The macroeconomic environment has become increasingly volatile due to the trade tensions between the United States and China," Ellipsiz noted in its outlook statement.
"On this backdrop, we remain cautiously optimistic of our business and performance prospects. Our distribution and services solutions segment will endeavour to continue to contribute to the results of the group, notwithstanding these uncertainties."
It added that its intelligent retail and vending platform business "is scaling up and is in discussions on new partnerships and alliances to expand its platform both locally and regionally". Ellipsiz set up a joint venture with Kalms Investment Pte Ltd for this business segment in May.
The board has proposed a final dividend of S$0.02 a share, the same as in the year-ago period, and a special final dividend of S$0.01 a share. It paid interim dividends of S$0.10 a share, including an interim special dividend, compared with S$0.025 previously.
Ellipsiz ended half a Singapore cent, or 1.11 per cent, higher at S$0.455, before the results were announced.
