KUALA LUMPUR (Oct 26): Globetronics Technology Bhd's net profit for the third quarter ended Sept 30, 2021 (3QFY21) slipped 9.8% to RM16.27 million from RM18.03 million a year earlier due to lower volume loadings from certain customers and a drop in economies of scale.

As such, earnings per share shrank to 2.43 sen from 2.69 sen, the miniaturised optical sensors manufacturer said in a filing with Bursa Malaysia on Tuesday (Oct 26).

Quarterly revenue fell 15% to RM55.66 million year-on-year (y-o-y) from RM65.54 million.

On a quarterly basis, Globetronics' net profit surged 160% from RM6.25 million, while revenue was up almost 20% from RM46.4 million — both recorded in 2QFY21.

The company attributed the substantially higher quarter-on-quarter (q-o-q) earnings to higher volume loadings of products and better economies of scale from certain customers.

For the cumulative nine-month period, Globetronics' net profit went up 3.27% to RM35.06 million from RM33.94 million a year before despite recording a 4.2% drop in revenue to RM157.46 million from RM164.37 million a year ago.

As for prospects, Globetronics said the group's financial performance may continue to be impacted by the Covid-19 pandemic with lockdown or stay-at-home order depending on the number of infected Covid-19 cases.

"[Notwithstanding that,] the group has taken strong initiative to mitigate the exposure and disruption in the supply chain.

"The group will [also] continue to focus on escalating up the value chain and riding on the research and development (R&D) initiatives in new products' design and development with our key customers moving forward," it said.

Meanwhile, Globetronics also announced the appointment of Heng Charng Yee as its new chief operating officer. Charng Yee, 37, is the daughter of the chief executive officer Datuk Heng Huck Lee, who is also an executive director. 
 

Globetronics shares closed one sen higher at RM2.15, valuing the group at RM1.44 billion.