SINGAPORE (Feb 27): Global Testing Corp, the provider of testing services to customers in the semiconductor industry, reported a 28.2% decrease in net profit from continuing operations of US$2.8 million in FY17 from US$4 million in FY16.
Revenue for the year ended Dec 31 2017 decreased by 3.2% to US$28.1 million, compared to US$29.0 million a year ago, mainly due to the decrease in customers’ orders.
Administration expenses for 4Q17 was a credit of US$0.02 million, compared to administration expenses of US$1.4 million in 4Q16.
Other operating expenses for 4Q17 decreased by 39.2% to US$0.2 million, compared to US$0.3 million in 4Q 2016, mainly due to loss on disposal of available for sale financial assets recognised in 2016.
On June 30 2017, the group ceased its USA operation, Global Testing Corporation (USA). The financial results of GTC-USA has been classified as discontinued operation. The group made the decision to close this operation as GTC-USA has been incurring losses over the past several years.
GTC says its business remains fundamentally sound and continues to demonstrate resilience in FY17, despite the seasonally slower quarter for chip testing services as vendors work to rebalance their year-end inventories.
Looking ahead, GTC expects growth in semiconductor sector to remain relatively flat in 2018 while new technologies in the areas of artificial intelligence, imaging technology as well as automotive technology could drive demand for chips with higher processing power and chip testing services.
"As we move into 2018, we will continue to exercise diligence and prudence in managing our cost and improving our operational efficiencies to deliver on our commitment in delivering value to our shareholders," says the group.
Shares in GTC closed 6 cents higher at $1.14 on Tuesday.
