Achieva Returns To The Black With Net Profit Of $2.7 Million In Fy2003, Reversing A Net Loss Of $7.2 Million In FY02
– Group turnover grew 12.2% to reach $521.3 million
– Group to sharpen focus on electronics components business to take advantage of the global recovery in the semiconductor industry
– North Asian markets continue to drive growth
Singapore, February 26, 2004: Mainboard-listed Achieva Limited, one of Asia Pacific’s top knowledge-based, value-added distributors and solutions providers focusing on electronics and IT-related products, today reported a Group net profit of S$2.7 million on a turnover of S$521.3 million for the financial year ended 31 December 2003.
The Group returned to profitability from a loss of S$7.2 million in FY2002 due mainly to higher sales and profit contributions from its electronics components business, lower operating expenses as a result of streamlining of its PC Peripherals business and the write-back of provisions made in previous years.
The Group registered a 12.2% increase in turnover, primarily due to higher sales from the Group’s Electronics Components (Components) division, especially in Greater China and India, which saw aggregate revenue grow from S$4.5m to S$50m. Sales growth in the second half of FY03 was stronger as the Group benefited from an upturn in the semiconductor industry, especially the robust growth in the North Asian markets such as China and Taiwan. The Components division registered a revenue growth of 55.5% to S$116.3 million. Profit before interest grew 36.8% to S$7.0m.
For the PC Peripherals division, revenue increased by 3.9% to S$404.4m. Losses from this division were reduced from S$6 million to S$1.4 million. The reduction was mainly due to the decline in operating costs.
The Group’s overall operating cost was reduced by 21.3% to S$21.5 million.
Earnings per share for the Group is 0.6 cents, while net asset value per share is 12.23 cents.
Commenting on the results, Mr Henry Lim, President and CEO of Achieva, said: “The year 2003 is a turnaround year for the Group. The financial turnaround reflected the Group’s strategic focus on its core businesses – especially its Components division, which benefited from the uptrend in the global semiconductor industry. We have restructured our PC peripherals division and reduced operating costs. We have also reduced our investment in non-core businesses such as our VOIP business.”
“Going forward, we expect the Components division to continue to leverage on the robust global recovery in the semiconductor market. North Asia will be our key growth market, as China remains the main manufacturing hub for global electronics giants. Demand for electronic components will therefore continue to be healthy. However, we expect challenges in the PC peripheral markets to prevail during the year although there are signs of a pick-up in demand for PCs in Asia. With our strategy of focusing on higher-margin products, the emerging demand for Consumer Electronics HDD Storage devices and a tighter cost structure, we expect our PC peripherals division to improve its performance. With the Group’s strategic focus on its core business as well as the brighter prospects in the global semiconductor industry, we remain optimistic about the Group’s overall results.”
Listed on the Mainboard of the Singapore Exchange since June 2000, Achieva is one of Asia-Pacific’s top value-added distributors and solutions providers focusing on electronics and IT-related products. With corporate headquarters in Singapore and its operations spanning the Asia-Pacific region, the Achieva Group represents in excess of 30 product brands. Currently, the Group has four operating subsidiaries and a staff strength of about 350, serving a growing customer base of about 6,000 in the Asia-Pacific region. The Group’s business operations are grouped under three product sectors or groups — PC peripherals, parts and software; electronic components; and strategic investments/technologies.