KESM sees dull demand ahead after Q3 losses


  • Corporate News
  • Tuesday, 02 Jun 2020

KUALA LUMPUR: KESM Industries Bhd, an independent burn-in and semiconductor testing services provider, posted a RM3mil net loss in the third quarter ended April 30 as the lockdown in China and prolonged movement control order at home disrupted its operations.

This was the company's first quarterly loss since January 2013.

KESM told Bursa Malaysia today that its revenue in the third quarter fell 27% to RM54.2mil.

"The lockdown in China and the prolonged MCO in Malaysia have disrupted and limited our production. Consequently, we experienced a lower volume for burn-in, testing and electronic manufacturing services (EMS)," it said.

The company expects demand for its services is to remain "dull" for the rest of the year.

"Our priority is to focus on improving asset utilisation and aligning cost structure with production levels,:" it said.

"Whilst remaining cautious in our capital expenditure, the Group will nonetheless make appropriate capital investments in partnership with key customers," it added.

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KESM Industries

   

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