UMS Holdings' Q1 profit plummets 44% YoY due to semiconductor sales slump

The company remains positive as the semiconductor sales decline has moderated.

UMS Holdings reported a 44% year-on-year (YoY) decline in net attributable profit to reach $9.8m in the first quarter due to the fall in semiconductor sales.

In a disclosure, UMS reported that the group revenue was down by 33% to $54m as it saw a 37% drop in semiconductor sales and a 12% revenue decline in the “others” segment.”

The company attributed the dip in the semiconductor performance as the Semiconductor Integrated System sales were down by 48% to $40.9m due to the high inventory of one of its key customers.

Component sales also decreased by 24% to $32m.

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Despite the decline in semiconductor sales slowing down in the first quarter, UMS Chairman and CEO Andy Luong maintains a bright outlook as the pace of decline has moderated.

“We have taken the right initiatives to beef up our production capabilities and strengthened our capital base, hence we will be in an excellent position to capture new growth opportunities when the global semiconductor demand rebounds." 

Luong said that the group remained profitable during the period and expressed its gross margins, adding that it cut its expenses to strengthen its financial position.