PETALING JAYA: Globetronics Technology Bhd expects the semiconductor industry to continue experiencing challenging macroeconomic and geopolitical issues that will result in uncertain end demand, rising inflation and manpower shortages.

       In a filing with Bursa Malaysia, the group said it has taken measures and shall continue to strive to minimise any potential exposures or disruptions arising from these challenges.

       For its second quarter ended June 30, 2023, Globetronics net profit dropped to RM7.08mil from RM11.19mil a year earlier, while revenue dipped to RM31.51mil from RM47.85mil previously.

       Basic earnings per share stood at 1.06 sen versus 1.67 sen a year earlier.

       Globetronics said its second quarter performance was attributed to lower volume loadings from some of its customers, as well as higher tax expense of RM1.8mil compared to RM600,000 in the previous corresponding period.

       For the six-months period ended June 30, 2023, Globetronics’ net profit dropped to RM10.38mil from RM20.64mil in the previous corresponding period, while revenue dipped to RM64.64mil from RM90.68mil previously.

       Globetronics said the South-East Asia and North America segments recorded sales decrease as compared to the previous corresponding period last year.

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       Going forward, Globetronics said 2023 will be a challenging one for the group.

       “The group is expected to experience a decline in profitability for the financial year.

       “Several factors contributing to this decline include softer revenue forecasts from our customers, the full-year tax impact of our expired pioneer status in one of the subsidiaries, the full impact of increased minimum wages.

       “The increase in utilities costs is also another contributing factor,” it said.

       In May, StarBiz reported that Globetronics intends to introduce a new generation of light and gesture sensors for mass production this year.

       Group chief executive officer Heng Charng Yee was quoted as saying that the exercise was part of the group’s yearly revamp of new products targeted at its Europe-based customers.