KUALA LUMPUR (June 29): ATA IMS Bhd’s net profit dropped 87.68% to RM2.61 million for the fourth quarter ended March 31, 2020 (4QFY20) from RM21.21 million for 4QFY19, as revenue declined 10.44% to RM719.21 million from RM803.03 million.

Earnings per share (EPS) shrank to 0.22 sen from 1.84 sen last year, the group said in its results filing with Bursa Malaysia today.

ATA IMS said its performance was dragged by the Movement Control Order (MCO) enforced on March 18, which resulted in the suspension of the group’s factory operations.

The firm also incurred higher material contents and expenses for the marketing and recruitment of additional manpower to manage new customer projects.

For the full FY20, the electronics manufacturing service provider posted a lower net profit of RM78.34 million, down 30.64% from RM112.94 million, despite recording a higher revenue of RM3.35 billion, up 15.12% from RM2.91 billion previously.

EPS for the period dropped to 6.5 sen from 9.83 for FY19.

“Coupled with the implementation of cost control measures, the financial position of the group is expected to normalise within the next two quarters, barring any unforeseen circumstances.

“The outbreak of Covid-19 however, is still for the time being the most significant threat that creates uncertainties to global markets and the overall economic climate. The group will continue to monitor closely the current situation, and take necessary steps to ensure the impact to operations will be minimised,” it said on its prospects.

ATA IMS’ shares closed unchanged at RM1.28 apiece today, with 1.31 million units done. This gave the company a market capitalisation of RM1.54 billion.