KUALA LUMPUR: Hard disc drive (HDD) component maker Dufu Technology Bhd posted a drop in third quarter earnings, but expect a pick up in demand towards the end of the year.
The latest quarterly results, the group said, was affected by unfavourable foreign currency exchange rates, additional non-cash employee benefits and depreciation charges.
Net profit was down 23.5% to RM14.78mil in the July-Sept period, while revenue improved 1% to RM67.6mil.
"We anticipated and eventually felt the slowdown in the HDD business environment in the first half of 2019. Nevertheless, revenue has picked up since as volume loading by customers has improved in the second half and this is likely to continue towards end of the year 2019," it said in a filing with Bursa Malaysia today.
"Overall, we are still confident in the HDD longer-term outlook," it added.
Revenue, the company said, will be driven by the demand from HDD manufacturers.
"In terms of bottom line, the group will continue to improve its operational efficiency and keep a tight rein on costs to ensure price competitiveness on its products," it said.
Dufu said it also working closely with existing and new customers in creating value to their supply chain.
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