Venture blames its 2 segments for the sales decline in 1Q13

Associate contribution crashed 86%.

According to CIMB, Venture's sales decline was mainly from the printing and imaging segment and the networking and communications segment.

Associate contribution fell 86% yoy and the company paid some taxes in 1Q13 (versus no taxes in 1Q12) upon expiry of pioneer tax status at one of its subsidiaries.

Here's more from CIMB:

Cash cycle saw some lengthening as inventory rose in anticipation of 2H needs and new programmes. Cash level also fell as the company prudently lowered its borrowings.

Still, Venture remains in a net cash position. We continue to believe that 2H13 will be better for Venture as new projects, including those from Oclaro, gather steam.

The overall outlook oncustomers and end-markets remain challenging but we expect Venture to continue with its strong cost management, improving its cash cycle and staying focused on profitability.