AEM Holdings Ltd. Reports Strong 3Q2024 Performance and Upward Revision of 2H Guidance

AEM Holdings Ltd. has released its 3Q2024 financial results, showcasing significant strides in operational efficiency and profitability. Notably, the group has revised its 2H2024 guidance upwards to S\$190 million to S\$210 million due to increased demand from a key customer.

Key Financial Highlights

• 3Q2024 revenue stood at S\$74.2 million, a decrease of 6.5% from the previous quarter.
• Profit before tax, excluding exceptional items, increased by 3.5% to S\$0.9 million.
• Despite the revenue drop, the group achieved improved operational efficiency, leading to increased profitability.

Segment Performance

The Test Cell Solutions (TCS) segment, accounting for 46.7% of the group’s revenue, saw a decline of 16.6% quarter-on-quarter due to reduced engineering services for a key customer. Conversely, the Contract Manufacturing (CM) segment, making up 50.8% of the group’s revenue, experienced a 5.3% increase due to improved inventory situations among industrial customers.

Balance Sheet Overview

• Cash and cash equivalents decreased by 40.4% to S\$47.1 million.
• Inventories slightly increased by 1.9% to S\$334.1 million.
• Total assets declined by 4.1% to S\$646.7 million.
• Total liabilities decreased by 11.9% to S\$172.9 million.
• Total equity marginally dropped by 0.9% to S\$473.9 million.

Strategic Developments

AEM Holdings has announced the commercialization of its expanded AMPS platform, which includes advanced automated burn-in capabilities along with System Level Test (SLT) capabilities, powered by its proprietary PiXL^TM thermal technology. This new platform aims to enhance processor and DRAM manufacturers’ test coverage in a cost-effective manner.

The group also highlighted its mid-term strategy under the new leadership of CEO Amy Leong, focusing on:

• Diversifying revenue sources from different customer and market segments.
• Maintaining leadership in Test 2.0 technologies.
• Achieving operational excellence.
• Fostering a talent-driven culture to consistently deliver results.

Business Outlook

The semiconductor industry presents a mixed outlook, with AI and high-performance computing showing positive momentum, while segments like smartphones, automotive, and traditional computing face slower recovery. AEM remains committed to investing in differentiated test capabilities tailored for AI and HPC applications to drive long-term growth.

CEO Amy Leong commented, “During the third quarter, the AEM team made significant strides in both operational performance and profitability. We are inspired by our customers’ enthusiasm for our differentiated new products and remain dedicated to achieving robust growth through continuous innovation and improved operational efficiency.”

About AEM Holdings Ltd.

AEM Holdings Ltd. is a global leader in test innovation, providing comprehensive semiconductor and electronics test solutions. With a global presence across Asia, Europe, and the United States, AEM offers a robust ecosystem of test innovation and support.

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