AEM Holdings posted a 95.4 per cent decline in net profit to S$895,000, from S$19.7 million a year earlier, for the half-year ended Jun 30, 2024.
This comes as revenue declined 36.9 per cent year on year to S$173.6 million, from S$275.2 million previously.
The semiconductor test equipment maker on Wednesday (Aug 14) said this was due to a 42.1 per cent decline in its test cell solutions segment revenue, on account of weaker demand from the group’s key semiconductor customer.
Contract manufacturing revenue for the half-year also declined, by 28.8 per cent, due to prolonged inventory digestion in the industrial sector.
Earnings per share for the period fell to S$0.0029 per share, from S$S$0.0637 a year earlier.
The company said that its management is proactively rationalising its cost structure and realigning talent across the group to drive new business growth.
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“This has yielded a positive profit before tax despite markedly lower revenue from the year prior, while obtaining key milestone wins with its new marquee customers,” it said.
For the second half of this year, the group forecasts revenue to be in the range of S$160 million to S$180 million.
It said: “Despite moderate test utilisation and a decrease in near-term new capacity demand from the group’s key customer, quarter-on-quarter revenue growth is anticipated in Q4 2024, driven by new customer business growth.”
AEM chief executive Amy Leong said: “We are committed to optimising our operational efficiency and operating expenses, while maintaining our core investments in technology development and commercialisation efforts to drive strategic growth.”
She added: “I look forward to sharing my vision for AEM during our Q3 2024 results briefing in November.”
Shares of AEM fell 2.7 per cent or S$0.04 to S$1.46 on Wednesday, before the results were announced.
