Revenue also fell by 22.67% to RM33.13 in Q1 FY2023 from RM42.84 million a year earlier.

The semiconductor manufacturer said that the lower revenue and net profit in the current quarter was mainly due to lower volume loadings of products from its customers causing a significant drop in economies of scale.

Furthermore, a tax expense of RM1.9 million in the quarter as opposed to RM600,000 in the corresponding quarter ended March 31, 2022, and a foreign exchange loss of RM65,000 in the same period contributed to the decline in profit.

It reported an earnings per share of 49 sen against RM1.41 in Q1 FY2022, the group said in its bourse filing today.

On its prospects moving forward, it said the semiconductor industry continues to experience “challenging macroeconomic and geopolitical issues” resulting in supply chain disruption, uncertain end demand, rising inflation and manpower shortages.

Globetronics expects 2023 to be a challenging year for the group, with an expected decline in profitability for the financial year.

“Several factors contributing to this decline include softer revenue forecasts from our customers, the full-year tax impact of our expired pioneer status in one of the subsidiaries, the full impact of increased minimum wages and increase in utilities costs,” it said.

The group’s share price was unchanged at RM1.10 today, giving Globetronics a market capitalisation of RM736.39 million.

As the results were announced after market close, shareholders have yet to react to the group’s below-par financial results.