Venture's printing and imaging segment crashed a whopping 43% in 4Q13

Results disappointeed markets' expectations.

According to DBS, Venture reported net profits of S$38m (flat y-o-y, +8% q-o-q), below forecast of S$44m.

Results fell short mainly because of lower-than-expected revenue of S$622.8m (+5% y-o-y, +6% q-o-q), compared to forecast of S$829m.

Here's more from DBS:

4Q13 saw further decline in Printing & Imaging (-43% y-o-y, -26% q-o-q). Q-o-q, Computer Peripherals posted the strongest growth, up 21% sequentially due to more volume with data storage.

Elsewhere, the expected uplift in networking remains elusive due to customer M&A, which is also impacting RSSI.

Agilent was lagging behind expectation mainly due to the customer’s divisional split. Margin recovery continues but yet to stabilise.

Although margin has improved sequentially through the quarters, this improvement is largely dependent on product mix which has yet to stabilise, as customers’ orders are still very much pegged to economic cycles and new product launches. 

New customer wins and continuous share gain are growth drivers but could be partly offset by industry consolidations.

Venture has shared very early signs of capex spending in the Computer Peripherals segment where the company supplies enterprise storage. However, management remains mindful of the adverse impact of industry consolidations, as several customers have yet to revisit previous run-rates. In view of these uncertainties, we believe FY14 earnings growth would start to slow and moderate.