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Venture Corporation Ltd. Grows 11% In Revenue In First Quarter Year On Year

Venture-Corp logoVenture Corporation (SGX: V03), one of the largest contract manufacturers in Singapore, reported its first-quarter result on 30 April 2014. Venture Corp started out as an electronics services provider. However, it has since transformed into a contract manufacturer and fulfillment service provider for more than five industries.

Operating Result

Venture Corp recorded revenue of S$ 591million, which is 11.4% higher year on year. It faced a higher cost of goods sold with slightly lower research & development expenses. Overall, its net margin was maintained at around 5.2%, and the company ended the quarter with S$ 30.8million, 9.8% higher than last year.

The main sectors that the company serves are computer peripherals & data storage, networking & communications, printing & imaging, retail store solutions & industrial products and test & measurement/medical/others. The largest revenue slice came from the test & measurement group while computer peripherals contribute the least revenue. The test & measurement group was also growing the fastest, recording a 24.2% growth in revenue since last year, ending the quarter with S$ 182.4million, which is 30.8% of the total revenue.

The company has a strong balance sheet with a net cash position. The group improved its net cash position since last year, boosting it to S$ 237.6million. Venture Corp was able to report a cash generative quarter as S$ 37.6million is obtained from operating activities while only S$ 27.8million is spent in investing activities.

The management was relatively positive on the outlook of the company, and are expecting more revenue from its new projects.

Foolish Summary

Venture Corp ended 30th April 2014 at S$ 7.67 per share. It is trading at a price to earnings of 15.8 times while having a 6.5% dividend yield. The company reported a earning per share of 11.2 cents for this quarter.