Aemulus posts second straight quarterly loss as revenue tumbles 72.5%

KUALA LUMPUR (May 9): Aemulus Holdings Bhd posted its second consecutive quarterly loss of RM4.69 million for the second quarter ended March 31, 2023 (2QFY2023), compared with a net profit of RM4.61 million a year earlier.

Its earnings were dragged down by a decline in revenue due to cautious spending by customers anticipating a slowdown in the semiconductor industry and shipment delays due to a slowdown in customers’ expansion pace.

The ACE Market-listed automated test equipment manufacturer posted a 72.5% drop in revenue to RM5.29 million from RM19.2 million in 2QFY2022, according to its Bursa filings on Tuesday (May 9).

Aemulus said its operating costs rose to RM6.99 million from RM4.75 million, due to an increase in staff costs to attract and retain talent. Financing costs increased from RM305,000 to RM523,000, mainly attributed to the drawdown of tradeline facilities for working capital purposes.

Meanwhile, research and development (R&D) costs increased from RM537,000 to RM1.38 million due to amortisation costs and the use of more R&D resources for research activities to develop new products.

For 1QFY2023, the group registered a RM4.77 million net loss on revenue of RM9.85 million.

On the outlook, Aemulus said the outlook for the semiconductor industry depends on the speed of demand recovery in China as well as changes in the global semiconductor inventory level.

However, all segments of the global electrical and electronics (E&E) market are currently showing no significant signs of increasing demand, Aemulus said.

“The silver lining within this global phenomenon is to focus on business development and customer engineering engagement activities. This situation may lead to market recovery in the next three to six months.

“The group is braving through the global uncertainties both economically and geopolitically in nature. The fundamentals of the group remain strong in terms of bookings, products, financial and business opportunities,” it added.

Aemulus’ share price, which has fallen 30.61% year-to-date, closed flat at 34 sen on Tuesday, with a market value of RM223.94 million.