Serial System's net profit crashes 31% to US$11m in FY15

Due to lower profit margins.

Mainboard-listed semiconductor manufacturer Serial Systems reported a net profit of US$11.0 million for FY2015, compared to US$16.1million for FY2014.

The decline was on back of lower gross profit margins and increased losses at two of its associated companies – Taipei-based Bull Will Co Ltd, which designs, manufactures and distributes magnetic components for electronic products; and Achieva Technology Pte Ltd, which distributes IT and digital lifestyle products.

Gross profit margin slipped to 7.5% from 8.7% as sales of lower-margin products in South Korea and Taiwan accounted for a greater portion of the Group’s electronic components distribution revenue.

"The semiconductor industry, which the Group is a part of, is showing signs of slower growth amid an increasingly uncertain global economic climate. We will continue to work on containing costs and improving profit margins even as we explore opportunities to expand our consumer products business," said Dato’ Seri Dr. Derek Goh, Serial System’s Executive Chairman and Chief Executive Officer.