AEM Holdings Ups 2H2024 Guidance Amid Strong Operational Efficiency
AEM Holdings Ups 2H2024 Guidance Amid Strong Operational Efficiency
Singapore, 12 November 2024 – AEM Holdings Ltd. (“AEM” or “the Group”), a global leader in test innovation, has released its voluntary business update for the third quarter of 2024 (3Q2024). Despite facing a slight dip in revenue this quarter, the Group has demonstrated exceptional operational efficiency, leading to an increase in profitability and a revised upward guidance for the second half of 2024 (2H2024).
Key Financial Highlights:
- 3Q2024 revenue stood at S\$74.2 million, marking a 6.5% decrease from 2Q2024.
- Profit before tax (excluding exceptional items) was S\$0.9 million, an increase of 3.5% from 2Q2024.
- The Group has revised its 2H2024 revenue guidance to S\$190 million to S\$210 million from the previous range of S\$160 million to S\$180 million, driven by a key customer pulling in systems from FY2025 into 4Q2024.
- Net loss for 3Q2024 was S\$917,000, a 39.5% improvement from 2Q2024’s net loss of S\$1.5 million.
Segment Performance:
The Test Cell Solutions (TCS) segment, which accounted for 46.7% of Group revenue in Q3, experienced a 16.6% decline in revenue quarter-on-quarter, primarily due to a reduction in engineering services rendered for a key customer. In contrast, the Contract Manufacturing (CM) segment, making up 50.8% of Group revenue, saw a 5.3% increase quarter-on-quarter due to an improved inventory situation within industrial customers.
Balance Sheet Overview:
- Cash and cash equivalents decreased by 40.4% to S\$47.1 million as of 30 September 2024.
- Inventories slightly increased by 1.9% to S\$334.1 million.
- Total assets stood at S\$646.7 million, a 4.1% decrease from the previous quarter.
- Total liabilities decreased by 11.9% to S\$172.9 million.
- Total equity was at S\$473.9 million, a marginal decline of 0.9% from the previous quarter.
Operational and Strategic Developments:
The Group announced the commercialization of its expanded AMPS platform, which includes advanced automated burn-in and system-level test (SLT) capabilities powered by AEM’s PiXLTM thermal technology. This platform is expected to go online at the customer’s site by late 2024.
With the recent appointment of Amy Leong as CEO, AEM has set forth a four-point mid-term strategy focusing on revenue growth through customer and market diversification, continued investment in Test 2.0 leadership, operational excellence, and fostering talent and culture to deliver consistent results.
Business Outlook:
The semiconductor industry continues to experience mixed fortunes, with AI and high-performance computing showing positive momentum, while segments like smartphones, automotive, and traditional computing face slower recoveries. AEM is committed to leveraging the expanding opportunities in AI by investing in differentiated test capabilities tailored for AI/HPC applications, including thermal management and high-throughput automation.
AEM’s CEO, Amy Leong, commented, “During the third quarter, the AEM team made significant strides in both operational performance and profitability. We are inspired by our customers’ enthusiasm for our differentiated new products and remain dedicated to achieving robust growth through continuous innovation, close collaboration with our strategic customers, and an unremitting drive for improved operational efficiency.”
About AEM Holdings Ltd.
AEM is a global leader in test innovation, providing comprehensive semiconductor and electronics test solutions. With a global presence across Asia, Europe, and the United States, AEM offers a robust ecosystem of test innovation and support. The company is listed on the main board of the Singapore Exchange (Reuters: AEM.SI; Bloomberg: AEM SP).
Issued by: Financial PR Pte Ltd
Contact: Kamal Samuel / Shivam Saraf
Email: kamal@financialpr.com.sg / shivam@financialpr.com.sg
Tel: 6438 2990 / Fax: 6438 0064
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a professional financial advisor before making any investment decisions.
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