T
he Group’s revenue in FY15 increased by 23.5% to
S$28.4 million. Net profit stood at S$6.6 million, a
turn-around from the S$9.9 million loss in FY14. The
improved performance was driven by the Burn-in Boards and
Board Manufacturing business segment which registered
higher revenue. The Group’s other two business segments
also achieved revenue growth.
Gross profit rose to S$6.9million, which was a 107.1% increase
over FY14’s gross profit of S$3.3 million. Consequently, gross
profit margin increased to 24.2% from 14.5% in FY14.
Segmentally, the Burn-In Services business segment reported
higher revenue of S$6.7 million in FY15 as compared to S$4.6
million in FY14. The Burn-In Boards and Board Manufacturing
business segment recorded revenue of S$13.8 million in FY15
which was higher than the revenue of S$11.1 million in FY14.
The Engineering Services business segment also reported
higher revenue of $7.9 million in FY15 as compared to S$7.3
million in FY14.
The operations in Singapore and the US were the main
contributors to the Group’s revenue, accounting for 49.3%
and 27.2% respectively, with the other regions including
Malaysia making up the remaining 23.5% of the Group’s
revenue.
BURN-IN SERVICES
The Group provides Static Burn-In, Dynamic Burn-In, Test
During Burn-In and High Power Burn-In for semiconductor
manufacturers. We serve the segment of the industry that
requires fail-safe or high reliability semiconductor devices,
including microprocessors and automotive products.
Our portfolio of customers from the Asia-Pacific, Europe
and the US includes some of the key players in the global
semiconductor industry.
The Burn-In Services business segment contributed 23.4%
of the Group’s revenue as compared to 20.0% in FY14.
The stronger performance was due to the recovery in the
semiconductor industry, an increased demand for electronic
components in the automotive industry and demand
for burn-in services in the networking devices industry,
which were key factors in this business segment’s revenue
improvement.
During the year, we succeeded in extending our range of
services to our existing customers while simultaneously
gaining new customers, including the provision of assembly
services for the medical industry. We invested in high power
systems to increase our capacity to meet the increased
demand from our customers.
We operated with a lean, efficient workforce to address
the ongoing issue of a tight labour market and restrictions
on hiring foreign workers. We also continued with our
productivity enhancement measures to ensure that our
outputs were at optimum levels. We have incorporated
automation in our processes to improve productivity, quality
and output.
With possible growth in the semiconductor industry being
fueled by the “Internet of Things”
1
, we may see an increase
in demand for semiconductor devices. We are optimistic of
higher demand for burn-in services such as High Power Burn-
In Services and conventional Burn-In Services. Furthermore,
the automotive sector may provide more opportunities if
the use of sensors and other electronic devices in vehicles
continues to increase, in the push for more advanced and
sophisticated vehicles. We will seek to leverage this demand
and ensure that we have the necessary capabilities to meet
customers’ requirements.
TAPE AND REEL SERVICES
Our Tape and Reel Services employ the use of machines
that allow customers’ finished products to be delivered in
reel form. Currently, we have machines handling different
packages ranging from BGA, TSSOP, VQFN and DSO, with
round-the-clock delivery and collection services for our
customers.
Our expanded range of services in this segment includes
high magnification visual inspection and detaping services
as well as chemical cleaning, repair/modification and
maintenance of Burn-In boards to support our customers’
needs in this area.
BURN-IN BOARDS AND
BOARD MANUFACTURING
We are involved in the designing and manufacturing of a
wide range of Burn-In boards for the various types of Burn-In
systems as well as boards for other types of reliability tests
such as High Temperature Operating Life Test and Highly
Accelerated Stress Test. We are also qualified and licensed
to build Burn-In boards which are catered for high power
devices. We are constantly improving our competencies
in board design and assembly capabilities to keep up with
changing technology and customer requirements.
This segment contributed 48.8% of the Group’s revenue in
FY15 as compared to 48.1% in FY14. This segment registered
relatively stable revenues due to revenue received from new
customers and expanded services to existing customers.
We increased our capabilities and technological know-how
which allowed us to extend our services offered to new
1
Government Technology, “Report: Internet of Things Fueling Semiconductor Market”. Available:
Things-Fueling-Semiconductor-Market.html.
14
AVI-TECH ELECTRONICS LIMITED
| ANNUAL REPORT 2015
OPERATIONS
REVIEW
