Global Testing Corporation (AYN) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 12.4% YoY to US$21.1m as customer orders declined; net profit fell 61.3% to US$2.2m.

• Semiconductor testing demand weakened amid global market uncertainty, while higher short-term equipment rental costs pushed cost of sales up 6.0% YoY.

Financial highlights

• Revenue was US$21.077m, down 12.4% YoY; cost of sales rose 6.0% to US$16.560m and gross profit fell 46.5% to US$4.517m.

• Profit before tax was US$2.541m, down 59.4% YoY; net profit attributable to equity holders was US$2.189m, down 61.3%.

• Income tax expense was US$352k versus US$609k in H1 2022; a current tax benefit was partly offset by deferred tax and withholding tax expenses.

• Net cash from operating activities was US$4.421m versus US$9.606m; cash at period-end was US$16.970m versus US$17.783m at 31 Dec 2022.

Outlook and guidance

• Global semiconductor demand was expected to continue slowing in 2H FY2023; outlook remained cautiously optimistic, with business expansion to remain prudent.

• Focus remained on quality testing services, strong customer and supplier relationships, and maintaining the current level of business.