Written by The Edge
Global Testing Corporation, the company specialising in mixed signal and logic IC testing, says it reduced its net loss for the three months ended 30 June 2010 (2Q2010) to US$0.9 million ($1.2 million) in 2Q2010 from US$6.1 million in 2Q2009.
Group revenue increased 64.8% to US$13.8 million from US$8.4 million.
In June, Global Testing shifted its production lines to the new properties acquired in 2008, and closed one of its factories as part of its efforts to control expenses and increase the effective usage of resources.
A review of the recoverable amount of its land, buildings, furniture and fittings led to the recognition of an impairment loss of US$1.9 million included in the line item of other operating expenses. The factory is expected to be sold in 12 months and proceeds of the disposal are expected to exceed the carrying amount.
Capital expenditure (capex) for property, plant and equipment committed in 1H2010 was US$22.1 million, including US$6.3 million of assets held under finance leases.
As at 30 June 2010, cash and cash equivalents decreased 45.2% to US$19.6 million. This was due to the group having secured a new syndication loan in 2Q2010 and repaid its existing borrowings in May 2010.
The group expects its revenue to remain steady at the level achieved in the second quarter of 2010.
Dividend : None
