Quarterly Report For The Financial Period Ended 31 December 2016
Unaudited Condensed Consolidated Statement Of Financial Position As At 31 December 2016
(a) The unaudited condensed Consolidated Statement of Financial Position should be read in conjunction with the audited financial statements for the financial year ended 30 September 2016 and the interim notes attached to this interim financial report.
(b) Based on the number of shares of 438,850,000 ordinary shares of RM0.10 each.
Unaudited Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Quarter Ended 31 December 2016
(a) The Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the audited financial statements for the financial year ended 30 September 2016 and the interim notes attached to this interim financial report.
(b) Based on number of shares in issue of 438,850,000 ordinary shares of RM0.10 each as disclosed in Note B11.
(c) There is no diluted earnings per share as the Company does not have any dilutive potential shares as at the end of period ended 31 December 2016.
Review of Performances
Comparison with the corresponding quarter and financial period in the previous financial year
The Group has recorded revenue of RM5.59 million during this quarter, an increase of RM2.89 million or 107% as compared to the corresponding quarter in the previous financial year. The significant increase of the revenue is mainly due to higher demand from our customers in the radio frequency (RF) infrastructure, smartphone and tablets segments.
As compared to the corresponding quarter in the financial year 2016, the Group managed to record a profit of RM0.63 million during this quarter in line with the increase in the revenue and foreign exchange gain recorded.
Comparison with Preceding Quarter's Profit Before Taxation
The Group recorded profit before taxation of RM0.63 million for the financial quarter ended 31 December 2016, as compared to the loss before taxation RM1.84 million in the preceding quarter.
The significant increase in profit before taxation was mainly due to allowance for obsolete inventories amounting to RM1.59 million recorded in the preceding quarter. In addition, higher foreign exchange gain was recorded as well in line with the strengthening of the US Dollar against Ringgit during this quarter.
The group delivered more Automated Test Equipment (ATE) to customers this quarter as compare to the preceding year corresponding quarter (Q1 2016).
Market demand for our ATE from the smartphone and tablet market segment increased during this quarter. A major contributing factor to the higher revenue is our ATE design win into a tier one smartphone company. We believe that this design win will continue to contribute to our revenue in fiscal year 2017. At the same time, we believe that the demand for our ATE from our existing customers in the smartphone and tablet market will grow this year.
We managed to tackle successfully the challenges from our enterprise storage segment this quarter. With that and complement with the recent strong market demand for hard disk drive, we expect the orders from this segment to increase and return as a major revenue contributor in fiscal year 2017.
We are making good progress in business and market development in the Far East region. Barring any unforeseen circumstances, we expect a double digit revenue growth from the Far East in fiscal year 2017.