KUALA LUMPUR (April 24): Unisem (M) Bhd (KL:UNISEM) slipped into the red with a net loss of RM13.36 million in the first quarter of this year, as higher production costs squeezed margins despite increased revenue.

The semiconductor group posted a net profit of RM6 million a year earlier. The last time the company was in the red was close to six years ago.

Its gross profit plunged 65.7% to RM9.11 million in the first quarter ended March 31, 2026 (1QFY2026), from RM26.54 million a year ago. As a result, gross profit margin came in lower at 1.96% in 1QFY2026, from 6.26% previously.

Revenue rose 9.7% year-on-year to RM464.75 million in 1QFY2026, from RM423.62 million a year before, driven by higher sales volume across its key operating units.

Unisem did not declare any dividend for the quarter.

Looking ahead, the group said it continues to face a challenging operating environment marked by rising cost pressures and foreign exchange volatility, including a softer US dollar.

Nonetheless, the group remains optimistic on its prospects, supported by demand from AI-related applications and ongoing investments in data centre infrastructure.

It added that it will continue to focus on the disciplined execution of cost optimisation initiatives and operational improvements to enhance efficiency and mitigate margin pressures.

At noon market break on Friday, Unisem shares were three sen or 0.97% lower at RM3.07, with a market value of RM4.95 billion.