ECS Holdings reports drop in sales and profit

SINGAPORE - ECS Holdings has posted a 13 per cent drop in first quarter net profit to $7.2 million on the back of a 14.6 per cent fall in revenue to $930.9 million.

Revenue in North Asia decreased by 16.4 per cent to $554.7 million, due to lower sales of mobile devices, notebooks and desktop PCs.

Revenue in Southeast Asia slumped by 11.8 per cent to $376.2 million, due to lower sales of consumer storage products and notebooks as well as servers and networking hardware.

Earnings per share for the three months to March 31 eased to 1.96 cents from 2.26 cents previously.

Net asset value per share edged up to 101.85 cents compared to 101.59 cents as at Dec 31.

ECS noted that an industry report in August 2013 predicted that the outlook on IT spending was expected to continue to grow as consumers and enterprises increase their spending on IT products and infrastructures.

"However, our operations in Thailand will remain challenging in view of the current political uncertainty," it warned.

ECS said it will continue to focus on the higher margin enterprise systems segment and to build on strong customer relationships to ensure that it remains the preferred supplier of choice for various products and services.

"Barring any unforeseen circumstances, the board of directors remains cautiously optimistic about the group's financial performance in the second quarter of 2014 and FY2014."