- AEM's FY24 earnings came in at S$11.6mil on revenue of S$380.4mil (-21% y-o-y), ahead of our expectations.
- FY24 revenues were back-loaded, with 2H24 revenue of S$206.8mil (+0.4% y-o-y, 19.2% h-o-h) coming in at the higher end of the guidance of S$190-210mil.
Key customer Intel pulled in orders under the non-cancellable long dated PO programme.
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- FY24 gross margins contracted 1.2ppt y-o-y to 25.7% on the back of lower revenue, but AEM was able to return to profitability with net income of S$11.6mil in FY24 in the absence of arbitration settlement expenses of S$26.7mil recorded in the prior year.
Guidance signals a subdued 1H25, largely due to timing factors.
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- Reasons cited for the decline included a significant revenue pull of ~S$50mil from FY25 to 2H24, and to a lesser extent, some customer pushouts in system shipments into 2H25.
A stronger 2H25 is expected, driven by a recovery in contract manufacturing and potential product ramp-ups.
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