KUALA LUMPUR (July 27): Penang-based automated test equipment maker ViTrox Corp Bhd's net profit dropped 26.7% to RM37.66 million for the second quarter ended June 30, 2023 (2QFY2023), from RM51.35 million in the corresponding quarter a year ago, as revenue shrank amid still languishing customer demand.

Revenue dropped 21% to RM149.39 million from RM189.39 million, largely affected by the subdued demand in its Machine Vision System (MVS) "as a result of temporary grim outlook in the semiconductor industry", the company's bourse filing on Thursday (July 27) showed.

Earnings per share (EPS) retreated to 3.98 sen from 5.44 sen previously. It did not propose any dividend payout for the year.

The 2QFY2023 net profit, which is its second consecutive year-on-year decline, is nevertheless 14.12% higher than the RM33 million it made in 1QFY2023, when it recorded a lower revenue of RM133.33 million.

For the first six months ended June 30 (1HFY2023), ViTrox posted a net profit of RM70.65 million, down 30.3% from RM101.37 million in 1HFY2022, while revenue fell 24.5% to RM282.72 million from RM374.67 million.

The contraction was mainly due to cautious capital expenditure spending among semiconductor customers for MVS products during the market slowdown, the company said.

Despite its expectation that the sluggish economic growth seen so far would persist, ViTrox said it remains cautiously optimistic on its business prospects for the second half of 2023 — driven by its well-diversified customer base and a gradual pick up in customer demand.

“Nonetheless, the group will continue to focus on long-term growth strategies such as market expansion, customer relationship building and product innovation while expecting the global semiconductor equipment demand to bounce back in the next 12 months,” it added.

ViTrox shares fell two sen or 0.25% to RM8.05, valuing the group at RM7.61 billion.