The company’s net profit for the quarter came up to RM9.9 million, dropping 80.6% year-on-year (y-o-y) from the RM50.7 million it posted for the first quarter of last year.

Earnings per share for the quarter amounted to 0.61 sen, down 81% y-o-y from 3.14 sen in Q1 FY2022. Net profit dropped 85% from RM67 million in the previous quarter.

Quarterly revenue also shrunk by 16.6% y-o-y to RM354 million from RM424 million.

“The decrease in revenue and net profit was primarily attributable to lower sales volume in line with softer market conditions,” the group said in a filing with Bursa Malaysia.

“Despite the soft demand for the group’s products and services in the first financial quarter, the directors expect the group’s performance to improve in the next financial quarter,” it added.

Unisem’s dismal results come despite the group’s optimism for FY2023. In their Q4 FY2022 results report, the group said their outlook was positive despite economic uncertainties.

“The directors expect the group’s performance to be satisfactory for the next financial year,” it said in a Bursa filing on Feb 23.

Nonetheless, Unisem is not alone in experiencing a slump in profits.

The latest forecast from Gartner Incorporated projects global semiconductor revenue to decline by 11.2% in 2023.

“As economic headwinds persist, weak end-market electronics demand is spreading from consumers to businesses, creating an uncertain investment environment,” said Richard Gordon, practice vice-president at Gartner.

“In addition, an oversupply of chips, which is elevating inventories and reducing chip prices is accelerating the decline of the semiconductor market this year.”