UMS Integration has reported earnings of $9.8 million for 1QFY2025 ended March 31, 2025, a negligible change from the same period a year ago.
The group reported a net profit of $10.1 million for 1QFY2025, up 1% y-o-y.
Revenue for the reporting period came in 7% y-o-y higher at $57.65 million.
Earnings per share for 1QFY2025 came in at 1.38 cents per share, lower than the 1.41 cents reported in the same period a year ago.
The group has announced a tax-exempt dividend of 1 cents on the back of the 7% increase in revenue for the quarter.
UMS says that higher revenue was driven by better performances from both its semiconductor and aerospace businesses, which grew 6% and 22% respectively.
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However, this was offset by a 12% decline in its others segment as its tooling and material distribution business was affected by the prevailing soft market conditions.
Semiconductor component sales jumped 19% to $28.9 million in 1QFY2025, from $24.3 million in 1QFY2024, driven by higher demand from its new customers.
However, Semiconductor Integrated System ("IS") sales dipped 8% from S$21.4 million to S19.7 million during the same period, mainly due to supply chain issues which the group says have since been resolved.
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On a sequential basis compared to 4QFY2024, its semiconductor segment sales softened by 15% as IS shipments fell. Aerospace revenue also declined 18% as some products scheduled in 1QFY2025 were shipped in 4QFY2024. Sales in the others segment however grew 30%.
All of the group’s key markets, except Malaysia and US reported lower revenue in 1QFY2025. Malaysia saw a 287% sales surge to $9.4 million in 1QFY2025 as the group continued to ramp up production of semiconductor components for its new major customer.
US revenue grew 7% while sales in Singapore declined 5% in 1QFY2025 y-o-y mainly due to lower IS shipments. Lower component spares sales caused a 22% slump in Taiwan revenue.
Personnel costs rose 6% y-o-y for the quarter mainly due to increased headcount and salary inflation while depreciation expenses jumped 36% due to new production equipment. Other expenses grew 8% due to professional fees incurred for the UMS’s secondary listing exercise.
The group says that it maintained its bottom line despite incurring higher expenses and a foreign exchange loss of more than $1 million.
As at end March, UMS’s net cash stood at $81.4 million. This is due to net cash generated from operating activities of $11.4 million and proceeds from the disposal of property, plant and equipment of $0.7 million, partially offset by capex of $11.0 million and repayment of bank borrowings during the period.
UMS Chairman and CEO Andy Luong says: “Despite the ongoing trade war between the world's largest superpowers weighing on global sentiment, the group's key customers' order forecasts have not changed. We are especially encouraged by the strong order flow from our new key customer as it seeks to divert its US supply source to Asia.”
Shares in UMS Integration closed flat at $1.05 on May 9.
