Powermatic Data Systems (BCY) H1 2026 earnings summary

Executive summary

• 1HFY2026 revenue fell 18% YoY to S$6.1m amid lower customer orders, elevated inventory and a slower-than-expected Wi-Fi 7 transition; net profit declined 27% to S$0.8m.

• Cash and bank balances remained substantial at S$63.1m; a special interim dividend of 10 cents per share, totaling S$3.5m, was recommended from prior-year retained earnings.

Financial highlights

• Revenue was S$6.138m, down 18% YoY; gross profit declined 19% to S$2.947m, with gross margin at 48% versus 49% in 1HFY2025.

• Profit before tax fell 39% to S$0.908m; net profit was S$0.772m, down 27%, and basic and diluted EPS were 2.21 cents versus 3.03 cents.

• Other gains increased 32% to S$0.780m, including S$0.740m interest income versus S$0.519m; income tax expense fell to S$0.136m from S$0.434m.

• Marketing, distribution and administration expenses increased 12%, driven mainly by share-based payment expense and payments under the former CEO’s employment contract.

Outlook and guidance

• Wi-Fi 7 evaluation requests are rising, but qualification and integration take time; large-scale deployment depends on successful system validation.

• Legacy Wi-Fi inventory has stabilized and replenishment orders have increased; R&D and engineering teams are developing products for evolving customer needs.

• Development-property profits are expected to be recognized in FY2026 using the percentage-of-completion method for sold units; the impact is expected to be significant relative to the wireless business.