KUALA LUMPUR (June 24): ECA Integrated Solutions Bhd (KL:ECA) said its net profit has tumbled by 92.9% year-on-year for the second quarter ended April 30, 2024 (2QFY2024) due to the slowdown in demand for semiconductor components and equipment.

Net profit fell to RM252,000 from RM3.54 million in 2QFY2023 while revenue declined by 37.8% to RM5.81 million from RM9.35 million a year earlier.

ECA provides integrated production systems and stand-alone automated equipment for several industries including semiconductors, automotive and electronic devices.

“Despite the group's prudent approach to operational expenses, including costs of sales and other operational expenditures, the substantial decline of the group performance during the current quarter under review was the effect of the ongoing semiconductor slowdown,” it said.

Nevertheless, ECA remains optimistic about the gradual recovery of the semiconductor industry in the second half of 2024.

The group maintains a positive outlook on sustained demand growth in sectors such as artificial intelligence (AI), telecommunications and automotive industries.

For the six-month period (6MFY2024), ECA’s net profit declined by 94.6% to RM417,000 from the previous year’s corresponding period of RM7.66 million.

Meanwhile, revenue fell by 42.8% to RM11.43 million from RM19.99 million.

Shares of ECA were down 1.5 sen or 3.4% to 42.5 sen at Monday’s market close, valuing the group at RM246.1 million. Year to date, the counter has declined by 15.8%.