JCY says lower sales reason for 2Q loss

JCY International Bhd slipped into the red for the second quarter ended March 31, 2018 (2QFY18) with a net loss of RM38.36 million, compared with a net profit of RM15.41 million a year earlier.

In a filing to Bursa Malaysia yesterday, the company attributed the weaker performance to lower revenue recorded and weakening of the US dollar against its functional currencies.

Revenue for the period dropped 14.74% year-on-year (YoY) to RM346.7 million.

For the first half of its financial year, JCY suffered a net loss of RM52.46 million compared with a net profit of RM57.48 million in FY17. Six-month revenue dipped 10.23% YoY to RM735.78 million.

Moving forward, the IT hardware maker moted growth of data centres is expected to strengthen demand for nearline HDD for the quarter ending June 30, 2018.

However, the estimation for lower PC notebook and consumer electronic HDD (CE HDD) for the next quarter is expected to be in line with the reporting quarter.

JCY added due to seasonal trend, the total addressable market (TAM) is expected to improve in the second half of 2018.

JCY said it continues to be competitive in the HDD space and is exploring the possibilities of utilising its competencies and capabilities in other related fields.