GEORGE TOWN: Aemulus Holdings Bhd, which dipped into losses in the first financial quarter ended Dec 31, 2015 (1QFY16), foresees more “non-revenue generative” costs before the company reaps the fruits of its investments in FY17.
Its chief executive officer Ng Sang Beng said the nature of the company’s business, which is principally in the design and assembly of automated test equipment (ATE), is such that it would require a longer time span to produce returns.
“In the ATE business, you can see the results between [a period of] six months and 18 months, as new vendors that come in would want to evaluate [our products] for a long period of time and it is a long sales cycle. After that period, however, the income would be recurring.
“That is why in FY16 we will incur some costs in so-called ‘non-revenue-generating activities’. We do not take a quarterly view on our business performance, but rather a long-term view due to its nature,” he told The Edge Financial Daily after the company’s inaugural annual general meeting recently.
Aemulus was listed on the ACE Market of Bursa Malaysia in September last year.
The company announced a net loss of RM1.88 million in 1QFY16 on revenue of RM2.7 million. The company attributed the loss to the cyclical effect of the business and the weaker global sentiment in the industry.
Aemulus’s share price hit the peak of 61 sen on Nov 11 last year, more than double of its initial public offering price of 28 sen. However, its share price lost its footing, down as much as 39 sen on Feb 17 after the release of quarterly losses.
According to Ng, Aemulus intends to grow its presence in Taiwan and China to sustain earnings growth.
“Last year, we set up a branch in Taiwan and hired a general manager over there, who is focused on business development. Since then, we have managed to secure two of the top three outsourced assembly and test companies in the world,” said Ng.
Despite the weaker growth in China, Ng said Aemulus wants to establish its presence there. “There is demand for cost-optimising products, so this is where our products come in and we believe this is an opportune time to garner market share in the ATE industry, which is what we are doing currently.”
Exports account for about 60% of the company’s sales.
The company’s other export markets include Singapore and the United States.
For the next two years, Ng said, Aemulus will be focusing on its two main products, which are the Amoeba 7600 radio frequency front-end devices tester and Amoeba 4600 ATE test platform.
Filepic of the Amoeba 4600 ATE test platform, one of the two main products Aemulus will be focusing on for the next two years.
AEMULUS (0181) - Aemulus to reap fruits of its investments in FY17
http://www.theedgemarkets.com/my/article/aemulus-reap-fruits-its-investments-fy17
Its chief executive officer Ng Sang Beng said the nature of the company’s business, which is principally in the design and assembly of automated test equipment (ATE), is such that it would require a longer time span to produce returns.
“In the ATE business, you can see the results between [a period of] six months and 18 months, as new vendors that come in would want to evaluate [our products] for a long period of time and it is a long sales cycle. After that period, however, the income would be recurring.
“That is why in FY16 we will incur some costs in so-called ‘non-revenue-generating activities’. We do not take a quarterly view on our business performance, but rather a long-term view due to its nature,” he told The Edge Financial Daily after the company’s inaugural annual general meeting recently.
Aemulus was listed on the ACE Market of Bursa Malaysia in September last year.
The company announced a net loss of RM1.88 million in 1QFY16 on revenue of RM2.7 million. The company attributed the loss to the cyclical effect of the business and the weaker global sentiment in the industry.
Aemulus’s share price hit the peak of 61 sen on Nov 11 last year, more than double of its initial public offering price of 28 sen. However, its share price lost its footing, down as much as 39 sen on Feb 17 after the release of quarterly losses.
According to Ng, Aemulus intends to grow its presence in Taiwan and China to sustain earnings growth.
“Last year, we set up a branch in Taiwan and hired a general manager over there, who is focused on business development. Since then, we have managed to secure two of the top three outsourced assembly and test companies in the world,” said Ng.
Despite the weaker growth in China, Ng said Aemulus wants to establish its presence there. “There is demand for cost-optimising products, so this is where our products come in and we believe this is an opportune time to garner market share in the ATE industry, which is what we are doing currently.”
Exports account for about 60% of the company’s sales.
The company’s other export markets include Singapore and the United States.
For the next two years, Ng said, Aemulus will be focusing on its two main products, which are the Amoeba 7600 radio frequency front-end devices tester and Amoeba 4600 ATE test platform.
Filepic of the Amoeba 4600 ATE test platform, one of the two main products Aemulus will be focusing on for the next two years.
AEMULUS (0181) - Aemulus to reap fruits of its investments in FY17
http://www.theedgemarkets.com/my/article/aemulus-reap-fruits-its-investments-fy17
