ASTI Holdings (575) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 23.9% YoY to S$51.0m; net loss was S$5.0m versus S$4.5m profit in FY2022. Cash and cash equivalents were S$20.7m at year-end.

• The current Board was appointed in January 2024 and was not involved in FY2023 operations; a review of prior Board dealings and transactions remains underway and could produce findings inconsistent with the report.

Financial highlights

• Revenue was S$50.960m in FY2023 versus S$67.006m in FY2022; lower orders from key customers amid a semiconductor slowdown drove the decline.

• Loss before tax was S$4.489m versus FY2022 profit before tax of S$5.656m; net loss was S$4.953m versus net profit of S$4.532m.

• Operating cash flow was S$8.239m; investing cash outflow was S$7.639m and financing cash outflow was S$5.359m.

Outlook and guidance

• Softer standard IC chip demand, global economic uncertainty, US-China chip tensions and cautious customers are reducing orders and volumes; sales and profit are expected to face near-term pressure through FY2025.

• Plans include cautious execution, maintaining financial health and restructuring activities no longer aligned with strategic priorities; profitability in coming years is a stated goal.