Multi-Code Electronics falls into the red in 1Q

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KUALA LUMPUR (Dec 30): Multi-Code Electronics Industries (M) Bhd, which specialises in electronics-related parts in the automotive industry, slipped into the red for its first financial quarter ended Oct 21, 2014 (1QFY15), with a net loss of RM1.84 million compared with a net profit of RM2.01 million a year ago.

Its revenue dropped 24.9% to RM20.32 million from RM27.07 million in 1QFY14.

Loss per share was at 4.15 sen, compared with earnings per share of 4.54 sen a year ago.

In a filing with Bursa Malaysia today, Multi-Code said it incurred losses in the current quarter mainly due to lower revenue and higher operational costs.

“The decrease in revenue was mainly due to a drop in demand for original equipment manufacturer (OEM) products in 1QFY15,” it added.

Multi-Code said it is facing a slowdown in demand from its OEM customers amid operating in an increasing cost environment.

“The group will continue its effort to mitigate the increasing costs. The board is cautious of the challenging operating conditions of the automotive sector,” it said.

Multi-Code shares closed up 2 sen or 1.58% at RM1.29 today, giving it a market capitalisation of RM57.28 million.