AEM Holdings, backed by Singapore state-owned investment company Temasek Holdings, reported Wednesday its January-to-September net profit fell 33.4 percent on-year to S$53.0 million as a key customer prepared to switch to the company’s next-generation test platforms in the first half of the year.
Revenue for the nine-month period fell 22.3 percent on-year to S$338.46 million, the company said in a filing to SGX.
The net profit margin fell to 15.6 percent in the nine-month period, from 18.3 percent in the year-ago period, AEM said.
On a quarterly basis, AEM reported revenue in the third quarter climbed to S$146.2 million, up from S$112.1 million in the second quarter, while profit before tax came in at S$27.8 million, up from S$19.6 million in the second quarter.
“The growth in top and bottom lines were driven by the volume ramp for our next generation System Level Testing handlers and peripheral tools. The group expects the ramp to continue through 4Q2021 and into FY2022,” AEM said.
In its outlook, AEM said the continued growth in demand for semiconductor chips for mission critical applications, and increased adoption of advanced heterogenous packaging, is driving the need for System Level Testing.
“The group sees the impact of this in the increased orders for 2H2021 and the strong adoption of its new platforms expected in FY2022,” AEM said.
“The group has also made significant progress in its technical engagements with 10 out of the top 20 semiconductor companies. The group has started receiving initial orders as a result of its efforts and expects to report meaningful revenue contribution from these engagements in 2H2022 and beyond,” AEM said.
AEM said it was “mindful” of supply-chain challenges due to the Covid-19 pandemic and that it might experience some shipment delays in the future, although none are currently expected.
AEM’s products include customized, application-specific semiconductor and electronics test and handling services for companies serving the advanced computing, 5G, and AI markets, the statement said. The company’s manufacturing plants are located Singapore, Malaysia, Indonesia, China, Finland and Vietnam.