Achieva reports lower turnover for 1H FY 2002 –
Electronics slowdown and business consolidation pulls Group into the red
16 August 2002, Singapore — Achieva Limited (“Achieva”), one of Asia Pacific’s top knowledge-based, value-added distributors and solutions providers focusing on electronics and IT-related products, today announced that its Group turnover (unaudited) fell by 6% from about $244.8 million in the first half of FY2001 to $230 million for the first six months ended 30 June 2002. The lower turnover is due to the slowdown of markets in Vietnam, China and Malaysia.
At half-time, the Group registered an operating loss before interest and tax of $3.4 million compared to an operating profit before interest and tax of $6.2 million for the corresponding period last year.
The Group’s weak financial performance was attributable to a few key factors:
– Losses of $2.9 million incurred by the PC peripherals sub-group which had to reduce margins to
maintain market share;
– Reduced margins in the electronic components sub-group;
– One-time write-off in investments relating to Nano Storage Pte Ltd of $1.9 million;
– Start-up investments for expanding its operations into North Asia especially in the People’s Republic of China (PRC); and
– Unrealised translation loss due to weakness in the US$
Due to funding difficulties faced by Nanochip, Inc., Achieva took a decision to voluntarily liquidate Nano Storage so as to cut losses. In the event of a successful funding exercise by Nanochip, Inc., the Group may be able to recover $965,000 as per the terms of the convertible notes issued by Nanochip, Inc. Achieva had earlier concluded an Asia-Pacific distribution agreement with Nanochip, Inc., and would be able to benefit from the Asian distribution rights for Nanochip’s products should they go into commercial production.
Earnings per share fell from 0.91 cents in the …