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Trek 2000 posts FY2018 net loss of S$3.8m on weaker customer demand
BELEAGUERED thumb drive maker Trek 2000 fell into the red in its fiscal 2018 ended Dec 31, posting a net loss of S$3.8 million, compared with a net profit of S$8.2 million in the year-ago period, owing to weaker customer demand.
For the 12 months ended Dec 31, revenue plummeted 73.3 per cent to S$30.1 million from the year-ago period which the company attributed to "weakening customer demand in the region arising from the trade war in 2018".
Gross profit margin decreased from 15.4 per cent to 3.7 per cent due to pricing pressure in view of those market conditions.
It posted a loss per share of 1.17 Singapore cents, compared with earnings per share of 2.54 Singapore cents in the previous year.
The group said it expects the market to remain challenging in the next 12 months.
It added: "In this difficult period, the Group will be selective in exercising priority on projects based on their profitability, and dealing with customers. Despite these challenges, the management is committed to exploring strategic partnerships to ensure the long-term sustainability of the Group's operations and continuing to penetrate the Internet of Things market in consumer wearable, medical and cloud technologies."
It is also investing in R&D to "stay relevant and sustainable" in the market.
The company said it plans to maintain its net cash and quoted and unquoted investments position, which is at US$25.7 million and US$17 million as at the end of the fiscal year, and "better utilise this fund for business expansion and higher returns in the short and long term".
Trek 2000 is being probed for various suspicious transactions by local investigators.
Its shares closed unchanged at S$0.092 on Friday before results were announced.