KUALA LUMPUR (May 2): Globetronics Technology Bhd saw its net profit fell by 65.08% to RM3.3 million in its first quarter ended March 31, 2023 (1QFY2023) from RM9.45 million a year earlier (1QFY2022).

Quarterly revenue have also decreased 22.67% to RM33.13 million in 1QFY2023 against RM42.84 million in 1QFY2022.

Basic earnings per share stood at 0.49 sen against 1.41 sen in 1QFY2022, according to its Bursa filing.

The electronics manufacturer attributed its earnings and revenue slump to lower volume loadings or production units from the group’s customers, followed by higher tax expense of RM1.9 million in 1QFY2023 from RM635,000, and forex losses for the quarter.

It said that the group is expected to experience a decline in profitability for the financial year.

“Several factors contributing to this decline include softer revenue forecasts from our customers, the full-year tax impact of our expired pioneer status in one of the subsidiaries, the full impact of increased minimum wages and increase in utilities costs."

On its prospects, Globetronics added that it has taken measures and strives to minimise any potential exposures or disruptions arising from the challenges in the semiconductor industry.

“Despite these challenges, the group remains committed to finding new and innovative ways to drive growth and profitability.”

Its share price closed unchanged at RM1.10 on Tuesday (May 2), valuing the group at RM736.39 million.