Datapulse Technology profit down 34.9% to $7m

Loss from discontinued operation relating to Datapulse Technology (Taiwan) Inc operating in the media storage industry was at $2.1 million.

Datapulse Technology Limited reported its results for the financial year ended 31 July 2012. The Group’s revenue from continuing operations decreased by 15.8% from $65.7 million to $55.3 million. The decrease in revenue was a result of slow sales since 2Q FY2012 at the back of uncertain macro-environment and pricing pressure.

Total operating expenses from continuing operations decreased by 14.3% from $53.6 million to $46 million due to lower cost of raw materials usage, lower staff costs and lower depreciation.

The decrease in cost of raw materials usage was attributed to lower sales and slight decline in raw material costs during FY2012. The decrease in staff costs was attributed to lower level of business activities and better cost control measures implemented during the year. Depreciation was lower as a result of more assets becoming fully depreciated.

Income tax expense was lower by 34.8% from $1.3 million to $0.8 million due to lower level of profitability, higher reversal of deferred tax liabilities of $0.5 million compared to $0.3 million reversed in FY2011 and an adjustment of $0.1 million for overprovision of tax in respect of prior years.

The Company was granted Development and Expansion Incentive status for a period of eight years where profits derived from the sales of digital versatile discs and DVD related products and services would be subject to a concessionary tax rate of 10%. This incentive had since expired on 30 November 2011.

Meanwhile the loss of $2.1 million recorded by Datapulse Technology (Taiwan) was attributed to $0.1 million in operating loss and the transfer of currency translation loss of $2 million residing in the Currency Translation Reserve in the Consolidated Statement of Changes in Equity to the Consolidated Statement of Comprehensive Income arising from discontinued operation of DTT upon liquidation during FY2012.

As a result, the Group’s profit from continuing operations decreased by 18.9% from $11.2 million to $9.1 million and profit for the year decreased by 34.9% from $10.8 million to $7 million.