KUALA LUMPUR (Oct 26): Vitrox Bhd’s net profit for the third quarter ended Sept 30, 2023 (3QFY2023) dropped by 34.6% to RM33.25 million compared to RM50.84 million in the corresponding quarter the year before (3QFY2022) due to softer customer demand and unfavourable product mix.

Earnings per share dropped to 3.52 sen, from 5.38 sen, its Bursa Malaysia filing showed on Thursday.

Quarterly revenue declined by 19.2% to RM149.97 million, from RM185.58 million in 3QFY2022, underpinned by softer demand from Automated Board Inspection (ABI).

For the full nine-month period ended on Sept 30 (9MFY2023), the electronics manufacturing services (EMS) provider said its net profit fell by 31.74% to RM103.90 million from RM152.22 million, weighed down by lower contribution from its ABI and Machine Vision System (MVS) segments.

Revenue, on the other hand, dropped by 22.8% to RM432.69 million, from RM560.25 million.

On a quarterly basis, the group’s net profit came in lower by 11.7% from RM37.66 million registered in the immediate preceding quarter (2QFY2023), while revenue increased marginally by 0.4% from RM149.39 million in 2QFY2023.

Moving forward, the group anticipates that the global semiconductor industry may continue to face challenges throughout the remaining part of its financial year 2023 (FY2023).

“Nevertheless, the group is resolutely committed to its long-term strategies to strengthen its operation, new product introduction and market expansion.

“It also foresees a robust, gradual recovery in the financial year 2024 (FY2024). The group maintains an optimistic outlook regarding the sustained growth in demand from artificial intelligence (AI), telecommunications and automotive sectors in the near future,” it said.

Shares in Vitrox ended three sen or 0.41% lower to RM7.20 on Thursday, giving it a market capitalisation of RM6.81 billion.