Global Testing Corporation (AYN) H2 2023 earnings summary

Executive summary

• FY2023 revenue fell 12.5% YoY to US$40.6m amid lower customer orders; gross profit declined 51.1% to US$7.9m and net profit attributable to equity holders fell 69.7% to US$3.4m.

• Operating activities generated US$10.4m in net cash; year-end cash and cash equivalents were US$11.0m.

Financial highlights

• Revenue was US$40.586m versus US$46.370m in FY2022; cost of sales rose to US$32.642m from US$30.125m, reducing gross profit to US$7.944m from US$16.245m.

• Profit before tax was US$3.892m versus US$12.113m; profit for the year was US$3.402m versus US$11.218m.

• Basic and diluted EPS was 9.75 US cents, down from 32.01 cents; income tax expense was US$0.490m versus US$0.895m.

• Net cash from operations was US$10.411m; investing cash outflow was US$14.419m and financing cash outflow was US$2.779m.

Outlook and guidance

• Cautiously optimistic on FY2024 as worldwide semiconductor markets are expected to improve from 2023 contraction; expansion-related capital investment will remain prudent.

• Focus remains on service quality, customer and supplier partnerships, and maintaining the current orderbook.