Venture Corp's net profit rocketed 135 per cent in the third quarter as its focus on value creation through deeper engineering, design and research and development capabilities paid off.
Earnings came in at $111.4 million for the three months to Sept 30 while revenue surged 50.5 per cent to $1.06 billion. This was in part due to more than 60 per cent of its customer base also raking in higher turnover in the past quarter.
The electronics services provider's quarterly revenue has crossed the $1 billion mark only once before.
Venture has more than 180 active customers in diversified fields such as networking and communications and life sciences.
Chief executive Wong Ngit Liong said: "One thing we are tracking... and maybe at the end of the year or next year we may show you more... but the trend is that our success correlates with the higher percentage of products where we have designed content.
"In this quarter alone, more than 65 per cent of our revenue came from products where Venture had designed content.
AT A GLANCE
$1.06 billion (+50.5%)
$111.4 million (+135%)
"Just one year ago, it was less than that and two to three years ago, even less than that... We are focused on pursuing more technology-based activities."
The firm said it will monitor this trend more precisely, in line with looking at its business from an "ecosystem" perspective instead of product by product, Mr Wong said.
"We are forging very comprehensive, tight partnerships with key leaders in these ecosystems," he added.
"These key partnerships enable us to earn their trust and confidence and as a result we have been able to contribute a lot more to our customers and our partners."
Venture is also building three centres of excellence, in Silicon Valley, China and Malaysia.
Mr Wong said: "Capacity is easy to build. Capacity is never the issue."
...The trend is that our success correlates with the higher percentage of products where we have designed content. In this quarter alone, more than 65 per cent of our revenue came from products where Venture had designed content.
VENTURE CORP CHIEF EXECUTIVE WONG NGIT LIONG, on how the firm will monitor this trend more precisely, in line with looking at its business from an "ecosystem" perspective.
Net profit margin in the third quarter was 10.5 per cent, up from 6.7 per cent in the same quarter last year. Net profit margin for the nine-month period was 7.9 per cent.
Venture had net cash of $535.1 million as at Sept 30, up from $366.5 million as at June 30.
Earnings per share was 39.5 cents, up from 17.1 cents a year earlier, while net asset value per share was $7.14 as at Sept 30, up from $7.03 as at Dec 31 last year.
Venture shares closed up two cents, or 0.1 per cent, to $19.30 before the results were announced.