KUALA LUMPUR (Oct 30): Integrated circuit designer SkyeChip Bhd (KL:SKYECHIP) posted a net profit of RM17.7 million in the second quarter ended Sept 30, 2026 (2QFY2027), supported by higher quarter-on-quarter revenue from its silicon intellectual property (IP) business.

Revenue for the quarter came in at RM54.2 million. No dividend was announced for the quarter.

There are no year-on-year comparisons for the company, which made its debut on the Main Market of Bursa Malaysia in May this year.

Quarter-on-quarter, net profit rose 27.2% to RM17.7 million from RM13.9 million, driven by a 30.3% increase in silicon IP revenue from new licensing projects.

Gross profit margin improved from 42.0% to 46.9%.

“We continue to expand our commercial reach into key markets while deepening our investments in R&D. With RM430.2 million of cash and investments and no bank borrowings, we are funding our next generation IP and our silicon products from a position of strength,” SkyeChip chief executive officer Datuk Fong Swee Kiang said in a separate statement.

Quarterly revenue rose 9.1% to RM54.16 million from RM49.62 million in the preceding quarter. 

Silicon IP contributed RM34.24 million or 63.2% of quarterly revenue, while silicon products accounted for RM19.52 million, or 36%. The remaining RM404,000 came from other activities, including engineering services.

China was SkyeChip's largest market during the quarter, contributing 38.6% of revenue, followed by North America at 36.6% and Northeast Asia at 24.7%. The group also recorded its maiden revenue contribution from Japan.

Excluding one-off initial public offering (IPO) expenses of RM857,000, SkyeChip said its 2Q net profit would have been approximately RM18.6 million, compared with RM16.4 million in the preceding quarter.

For the cumulative six months ended Sept 30, 2026 (1HFY2027), SkyeChip recorded a net profit of RM31.62 million on revenue of RM103.78 million.

The group said it achieved 67% of its FY2026 revenue target of RM155 million and 65% of its net profit target of RM48.5 million.

SkyeChip raised RM352 million from its IPO in May, of which RM22.13 million or 6.3%, had been utilised as at end-September.

At market close on Friday, their shares closed down three sen or 1.10% at RM2.69 valuing the group at RM4.83 billion.