MAINBOARD-LISTED semiconductor company UMS Holdings reported on Wednesday (May 10) a 10 per cent year-on-year decline in net profit for its first quarter amid slightly lower revenue and higher expenses.

Net profit for the three months ended Mar 31, 2023 fell to S$17.4 million from S$19.4 million in the year-ago period. On a per share basis, earnings slipped to S$0.0259 from S$0.0291 in Q1 FY22. The board declared an interim dividend of S$0.01 per share, unchanged from a year earlier.

UMS noted that its bottom line was affected mainly by higher expenses and a foreign exchange loss of S$200,000 arising from the weaker US dollar.

Revenue for the first quarter fell 5 per cent on-year to S$80.8 million. This came amid lower revenue from its largest semiconductor segment, which fell 1 per cent on year to S$72.9 million.

UMS said its semiconductor integrated system sales “remained strong”, rising 37 per cent from S$29.9 million in Q1 FY22 to S$40.9 million in Q1 FY23. However, revenue from component sales slid 26 per cent to S$32.0 million in Q1 FY23, which was mainly attributed to weaker demand from back-end semiconductor customers.

Revenue from the “others” segment was also lower, falling to S$3.7 million in Q1 FY23 from S$8.4 million in the prior year period. The group’s aerospace segment grew in the first quarter, with revenue rising 40 per cent on year to S$4.1 million.

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“In the face of global economic challenges and a slowing semiconductor industry, UMS remained resilient,” said chairman and chief executive officer Andy Luong. “While lower wafer fabrication equipment spending will persist in the coming months, we will focus on managing costs as we strengthen our production capacity in Malaysia.”

Luong added that UMS will be in an “excellent position to capture new growth opportunities when the global fab equipment demand resumes”. The group’s net asset value per share stood at S$0.5354 as at Mar 31, 2023, up from S$0.5089 three months earlier.

UMS shares closed unchanged at S$1.01 on Wednesday, before the earnings announcement.