camila August 6, 2021

SINGAPORE (THE BUSINESS TIMES) – AEM Holdings on Thursday (Aug 5) posted earnings of $29.5 million for the first half of the financial year ended June 30, down 46.6 per cent year on year from $55.3 million for the year-ago period due to lower revenue.

Revenue for the first half fell 29.8 per cent to $192.3 million from $273.7 million the previous year, which the electronic services provider says represents a normalisation after the ramping up of demand on equipment and consumables by its key customer in FY2020.

AEM nonetheless highlighted its latest half-year revenue as the second highest after a “record breaking” first half in FY2020, and said the revenue decline was in line with expectations due to migration to its next-generation tools in the later half of this year.

Its board has proposed an interim dividend of 2.6 cents per share, representing a payout of about 25 per cent, and down from five cents in the preceding year.

In its latest results announcement, AEM said it maintains its FY2021 revenue guidance of $460 million to $520 million. The group expects a strong uptake in the second half of FY2021 through FY2022 as its next generation tools are phased into its customer’s high volume manufacturing sites globally.

“These new tools that are being delivered in the second half of FY2021 and through 2022 are highly differentiated tools for the high-performance computing segment,” said AEM.

While the group noted continued challenges for order fulfilment due to ongoing supply chain disruptions in the industry, it said it was working with suppliers to secure the parts and components to meet its shipment plans.

“We are also pleased with our progress of deep technical engagements with 10 out of the top 20 global semiconductor companies, spanning mobility, memory and high-performance computing. We are hopeful to achieve meaningful revenue from these engagements in 2022,” said chief executive Chandran Nair.

AEM ended Thursday three cents, or 0.7 per cent, higher at $4.09, before the results were released.