UMS Q4 earnings fall 3% to S$15.7 million on lower semiconductor sales

SEMICONDUCTOR manufacturer UMS Holdings : 558 0% on Wednesday (Feb 28) recorded a net profit of S$15.7 million for the fourth quarter ended Dec 31, 2023, dipping 3 per cent from the earnings of S$16.1 million in the corresponding year-ago period.

This translated to earnings per share (EPS) of S$0.0234, down from S$0.0241 in Q4 FY2022.

Revenue for the period slid 27 per cent year on year to S$73.5 million, from S$101 million. This was attributed to lower revenue in the semiconductor and others segments in Q4 FY2023.

Semiconductor revenue for the three months fell 29 per cent to S$59.8 million year on year, due to declines in sales for the group’s semiconductor integrated systems and components.

Meanwhile, revenue in the others segment slumped 48 per cent to S$6.3 million, due to UMS’ weaker material and tooling distribution business, which was affected by the general business slowdown.

The revenue dip was partially offset by a 78 per cent surge in aerospace sales to S$7.4 million.

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Nonetheless, the group said it continued to generate positive net cash of S$31.2 million from operating activities, and free cash flow of S$23.8 million in the three months.

It declared a final dividend of S$0.022 per share for FY2023, higher than S$0.02 per share declared for FY2022.

For the full year ended Dec 31, 2023, net profit fell 39 per cent to S$60 million, from S$98.2 million a year earlier.

Revenue for the 12 months slid 19 per cent to S$300 million, from S$372.4 million.

UMS chairman and chief executive Andy Luong said: “The group’s performance reflects the success of our diversification strategy, as the aerospace business continued to report robust growth, moderating the impact of the global semiconductor slowdown.”

The group expects to remain profitable in FY2024.

Shares of UMS ended Wednesday flat at S$1.51, before the results were released.