Action Asia revenues slide 32% leading to $3.6m net loss

But generated higher positive cashflow.

SGX Mainboard-listed Action Asia Limited (Action Asia) has reported revenue of S$49.0 million for the first half year ended June 30, 2013 (1HFY2013).

The revenue was 32 percent lower compared to the first half year ended June 30, 2012 (1HFY2012). The decline was mainly due to lower selling price and orders for the Group’s consumer lifestyle entertainment products.

The reduced revenue, led to a $3.60 million net loss in 1HFY2013 against a net profit of S$1.49 million in 1HFY2012.

Despite the loss, the Group continued to generate positive cashflow of S$34.30 million in 1HFY2013 from its operating activities. This is higher than the S$5.81 million cash inflow in 1HFY2012.

This positive cash flow resulted in a 45 percent rise in Group’s cash and cash equivalent to S$58.00 million, up from S$40.09 million at the end of FY2012, the company said.

Cash per ordinary share rose to 15 cents, being 86 percent of the current share price of 17.5 cents as at 14 August 2013.

In line with lower sales and coupled with the Group’s stringent cost control measures, overall costs for the Group in 1HFY2013 have been reduced.

Employee compensation for 1HFY2013 was down by 5 percent to S$6.80 million against S$7.16 million in 1HFY2012. This was due to fewer overtime claims resulting from cost control measure adopted by the Group.