KUALA LUMPUR (April 26): Unisem (M) Bhd kicked off the financial year with its first-quarter earnings down 14% compared to the year prior, dragged by a lower gross profit margin, foreign exchange losses, and lower income from scrap sales.

Net profit for the first quarter ended March 31, 2024 (1QFY2024) stood lower at RM8.46 million, compared with the RM9.86 million it recorded for 1QFY2023, Unisem showed in a filing with Bursa Malaysia on Friday.

This was despite its quarterly revenue inching up 3% to RM364.77 million, from RM354.05 million previously. The higher revenue was due to higher sales volumes, as well as appreciation of the US dollar against the ringgit.

Despite the muted earnings, the semiconductor assembly and test services provider declared a first interim dividend of two sen per share, unchanged from a year ago, to be paid on July 5.

Looking ahead, Unisem expects a modest improvement in the performance of the group for the next financial quarter, despite the sluggish pace of recovery in the broader semiconductor industry.

The modest improvement, it said, is premised on increasing demand for the products and services of the group in certain market segments, such as power management and artificial intelligence, automotive and electric vehicles, and premium Chinese and US flagship smartphones.

As at 3.30pm on Friday, shares in Unisem were trading up 20 sen, or 0.55%, at RM3.66, after 398,700 shares changed hands. Its market capitalisation stood at RM5.90 billion.