Manufacturing services provider Aztech Global has reported earnings of $10.8 million for its 3QFY205, down 21.2% y-o-y. Revenue in the same period was down 19.9% y-o-y to $133.5 million, along with lower demand from customers.
The company says its bottom line was also weighed down by a higher effective tax rate incurred in Malaysia.
With these 3Q FY2025 numbers, Aztech's 9MFY2025 earnings reached $26.9 million, down 55.5% y-o-y.
The company was previously heavily reliant on one customer and with the scaling back of orders, Aztech has secured 22 new project orders from 11 new customers.
The new wins are from various industries, including consumer, MedTech, industrial and automotive segments.
Aztech says it has commenced the commercial production of 5 of these new orders YTD, with 5 others slated to start during the fourth quarter.
The remaining new orders are scheduled to commence commercial production in 2026, as part of the company's bid to build a more diversified customer base and grow its long-term recurring revenue.
The company has taken steps to trim the space it is using. It has sold a factory building in Dongguan, China, for $7.3 million, and lease back a portion of the space for RMB20 million over ten years.
It is also selling its Gelang Patah facility in Johor for RM28.7 million.
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Both deals are to be completed within this quarter.
Aztech says it remains "cautiously optimistic" about its prospects for the rest of the year, amid broader uncertainty.
It expects to remain profitable for the full year.
Aztech Global shares closed at 68 cents, down 0.74% for the day and down 3.57% year to date.
