KUALA LUMPUR (May 21): JCY International Bhd continued to record losses with net loss widening to RM22.55 million in its second quarter ended March 31, 2021 (2QFY21) from RM17.73 million in the immediate preceding quarter (1QFY21), on lower revenue.

Revenue fell 10.75% to RM247.08 million from RM276.85 million in 1QFY21, mainly due to the weakening of US dollar against the ringgit and lower quantity of products shipped, the hard disk drive (HDD) maker’s filing with Bursa Malaysia on Thursday showed.

On a year-on-year basis, JCY’s revenue was down 8.32% against RM523.94 million in 2QFY20, when it recorded a net profit of RM4.37 million.

JCY said a recent change in customer base and product mix has been challenging for its operations both in Malaysia and Thailand. Nevertheless, it said with the strong commitment of its senior management, the group believes it should be able to reap the benefits of its new enhanced products and deliver improved results in due course.

It also noted that the demand for storage remains strong, with quarterly HDD demand expected to average about 65 million per quarter up to end December 2021.

"Although SSDs (solid state drives) continue to cannibalize HDD demand in mobile and desktop applications, this is counterbalanced by the increase in the demand for enterprise HDDs, and price increases in SSDs due to integrated circuits' shortages globally. The recent global demand in the cryptocurrencies has also resulted in increased demand for HDDs," it added. 

JCY shares closed unchanged at 35.5 sen today, bringing it a market capitalisation of RM754 million.