Powermatic Data Systems (BCY) H2 2024 earnings summary

Executive summary

• FY2024 revenue fell 9% YoY to $28.1m; reported profit before tax dropped to $6.3m, including a $5.8m one-time charge tied to redevelopment of the investment property. Excluding the charge, PBT was $12.1m, up 4% YoY.

• Wireless connectivity products remain the primary business; new Wi-Fi 7 dual-band dual-concurrent modules launched, with claimed 30% lower front-end module power consumption.

Financial highlights

• Revenue was $28.095m vs $30.916m in FY2023; gross profit was $15.319m vs $15.396m.

• PBT was $6.275m vs $11.596m; net profit was $4.185m vs $9.488m; diluted EPS was 11.97 cents vs 27.14 cents.

• Adjusted for the one-time property charge, PBT was $12.12m vs $11.60m; adjusted diluted EPS was 28.66 cents vs 27.14 cents.

• Net cash from operating activities was $9.089m vs $10.714m; cash and cash equivalents were $58.950m at year-end vs $55.037m.

Outlook and guidance

• Elevated operating costs and customer efforts to reduce costs are expected to pressure revenue and profit margins; product development is positioned to maintain customer relevance.

• Redevelopment demolition was expected to start in Q3/Q4; marketing was planned after building-plan approvals from URA and other authorities.

• Interest income is expected to fall significantly in coming financial years as a substantial portion of cash surplus is deployed to redevelop the investment property.