KUALA LUMPUR: Aemulus Holdings Bhd recorded a net loss of RM4.77 million in its first quarter (Q1) ended Dec 31, 2022 (FY23) from a net profit of RM4.53 million a year ago. 

Revenue for the quarter was down 47 per cent year-on-year (YoY) to RM9.85 million from RM18.58 million in Q1 FY2022.

This was due to cautious capital expenditure spending from customers which saw a slowdown in semiconductor industry and deferment of delivery due to slowdown in customers' expansion pace. 

Aemulus said its research and development (R&D) expenses had increased due to more resources being deployed for new product development. 

The company said other expenses had also increased mainly due to the strengthening of the ringgit against the US dollar and renminbi in this quarter. 

Finance cost increased mainly attributed to the drawdown of tradeline facilities for working capital purpose. 

"Generally, the capital spending by our customers have reduced significantly and the market is expected to take a breather for a period of between three to six months. 

"In view of that, our cash flow control and management which we highlighted last quarter have delivered positive results. 

"We have reduced our inventory and we expect to reduce it further next quarter," it said in its Bursa Malaysia filing.  

The company is expected to crank up business development activities in the automotive market in the coming quarters. 

"We observed delays in customer projects but the overall business landscape remains positive. 

"The PC market has declined in the start of 2023, we are still hopeful that the network processor segment which contributes to our enterprise storage market shall be able to grow further, if not holding its current demand position. 

"Smartphone/tablet market has declined sharply and shall continue to do so in the next few quarters," it said. 

These may lead to short term impact to the company, but it expects a recovery within three to six months. 

"In short, the fundamentals of the group remain good in terms of bookings, products and financial," it said.