One-off retirement payouts hit Ellipsiz results

 Projected global growth in the semiconductor and contract manufacturing industry has left electronics company Ellipsiz "cautiously optimistic" about its prospects despite the trade spat between China and the US.

The firm's assessment came yesterday as it lodged its results for the 12 months to June 30.

Ellipsiz posted net profit of $9.1 million, up by 7 per cent on the same period a year earlier, while revenue rose 18 per cent to $49.1 million on the back of a stronger distribution and services solutions showing in Singapore, mainland China and Taiwan.

Contributions from discontinued operations bolstered the bottom line, amid both fair value and exchange losses, and one-off retirement payouts to the group's former chief executive and former chief financial officer.

Higher costs drove continuing operations into the red to the tune of $4.8 million, against a profit of $166,000 the year before, but earnings from discontinued operations propped up overall profit for the year.

The group completed the sale of its probe card solutions arm, SV Probe, for US$70 million (S$96 million) in October 2017.

Ellipsiz noted: "The macroeconomic environment has become increasingly volatile due to the trade tensions between the United States and China.

  • AT A GLANCE

  • REVENUE: $49.1 million (+18%)

  • NET PROFIT: $9.1 million (+7%)

  • TOTAL DIVIDENDS PER SHARE: 13 cents (+44.4%)

"On this backdrop, we remain cautiously optimistic of our business and performance prospects. Our distribution and services solutions segment will endeavour to continue to contribute to the results of the group, notwithstanding these uncertainties."

It added that its intelligent retail and vending platform business "is scaling up and is in discussions on new partnerships and alliances to expand its platform both locally and regionally". Ellipsiz set up a joint venture with Kalms Investment for this business segment in May.

It has proposed a final dividend of two cents a share, unchanged from last year, and a special final dividend of one cent a share.

The firm has already paid interim dividends of 10 cents a share, including an interim special dividend, bringing the full-year payout to 13 cents a share, compared with nine cents a share the year before.

Ellipsiz shares closed up 0.5 cent to 45.5 cents, before the results were announced.

A version of this article appeared in the print edition of The Straits Times on August 21, 2018, with the headline 'One-off retirement payouts hit Ellipsiz results'. Print Edition | Subscribe