Datapulse Tech's net profit plummets 45% to $0.9m in 2016

Weaker demand for media storage badgered its earnings.

Singapore provider of CD, DVD, and Blu Ray Discs Datapulse Technology might have felt the beating of the slow manufacturing sector of the city-state as it saw a whopping 45% decline in its net profits for its 2016 financial year.

The decrease is mainly due to the drop in demands for media storage products and services during the year.

The group's net profit fall from $1.6 million a year ago to $0.9 million while its revenue dropped 8.4% to $23.3 million from $25.4 million.

While its total operating expenses decreased by 6.3% to $23.4 million, the cost of raw materials usage
increased by 2.7% due to variation in the mix of products and services sold to customers.

Looking ahead, the group said it remained strong as it continued to generate positive operating cash flows amounting to $3.9 million during the financial year.

The group also plans to focus on increasing its revenue base through an expansion of its customer base and providing more value added services.

"At the same time, the Group will actively re-define its business strategies, and continue to explore measures to optimize utilisation of its resources efficiently," the group said in a statement.