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<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 30, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Absence of CDO loss lifts Venture Q1 results
Profit rises 42.3% despite sales falling 11.9% due to paring down of a business
By LYNETTE KHOO
VENTURE Corp posted a 42.3 per cent jump in net profit for the first quarter ended March 31 to $39.5 million, in the absence of fair value loss on a derivative financial instrument.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Alignment of needs: Venture carried more inventories worth $534.6 million in the first quarter</TD></TR></TBODY></TABLE>The group incurred a fair value loss of $12.6 million in the first quarter last year from its collateralised debt obligations (CDOs), which it fully marked down from the original $167.8 million to just $10.9 million as at end-Q1 2009. The CDOs matured in December 2009.
But revenue for the first quarter fell 11.9 per cent year-on-year to $639.5 million due to a paring down of the lower value-added portion of the printing and imaging (P&I) business.
The sales decline was widely anticipated, as the group was phasing out its low margin HP printer business.
'Apart from the revenue decline in this segment and related P&I peripherals and accessories classified under the computer Peripherals and Data Storage segment, revenue contributions from all other segments registered double-digit year-on-year improvement ranging from 12 per cent to 23 per cent,' said Venture.
Earnings per share rose to 14.4 cents for the first quarter this year from 10.1 cents in the same quarter a year before.
Cash and cash equivalents at end-March this year also fell to $492.7 million from $588.2 million a year earlier, as Venture generated less cash from operations and spent more on repayment of loans.
But excluding bank loans of $123 million, the group was still in net cash position of $369.7 million as at March 31.
Venture said that it improved its working capital compared to a quarter ago, with trade receivables reduced to $413.3 million in the first quarter from $588.4 million in the fourth quarter 2009 and trade payables narrowed to $397.3 million in Q1 2010 from $509.1 million in Q4 2009.
To align with customers' needs and the current industry-wide assurance of supply of components, Venture carried more inventories worth $534.6 million in the first quarter compared to $475.8 million in the fourth quarter of 2009.
The group said that it will continue to devote its efforts and resources to deepen and diversify its technical capabilities and extend its alliances with partners to broaden its market access and penetration.
It had earlier declared a final dividend of 50 cents per share on a one-tier tax-exempt basis for the financial year ended Dec 31, 2009. The dividend will be paid on May 20.
Yesterday, Venture shares closed 0.6 per cent higher at $9.86.
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</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Absence of CDO loss lifts Venture Q1 results
Profit rises 42.3% despite sales falling 11.9% due to paring down of a business
By LYNETTE KHOO
VENTURE Corp posted a 42.3 per cent jump in net profit for the first quarter ended March 31 to $39.5 million, in the absence of fair value loss on a derivative financial instrument.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Alignment of needs: Venture carried more inventories worth $534.6 million in the first quarter</TD></TR></TBODY></TABLE>The group incurred a fair value loss of $12.6 million in the first quarter last year from its collateralised debt obligations (CDOs), which it fully marked down from the original $167.8 million to just $10.9 million as at end-Q1 2009. The CDOs matured in December 2009.But revenue for the first quarter fell 11.9 per cent year-on-year to $639.5 million due to a paring down of the lower value-added portion of the printing and imaging (P&I) business.
The sales decline was widely anticipated, as the group was phasing out its low margin HP printer business.
'Apart from the revenue decline in this segment and related P&I peripherals and accessories classified under the computer Peripherals and Data Storage segment, revenue contributions from all other segments registered double-digit year-on-year improvement ranging from 12 per cent to 23 per cent,' said Venture.
Earnings per share rose to 14.4 cents for the first quarter this year from 10.1 cents in the same quarter a year before.
Cash and cash equivalents at end-March this year also fell to $492.7 million from $588.2 million a year earlier, as Venture generated less cash from operations and spent more on repayment of loans.
But excluding bank loans of $123 million, the group was still in net cash position of $369.7 million as at March 31.
Venture said that it improved its working capital compared to a quarter ago, with trade receivables reduced to $413.3 million in the first quarter from $588.4 million in the fourth quarter 2009 and trade payables narrowed to $397.3 million in Q1 2010 from $509.1 million in Q4 2009.
To align with customers' needs and the current industry-wide assurance of supply of components, Venture carried more inventories worth $534.6 million in the first quarter compared to $475.8 million in the fourth quarter of 2009.
The group said that it will continue to devote its efforts and resources to deepen and diversify its technical capabilities and extend its alliances with partners to broaden its market access and penetration.
It had earlier declared a final dividend of 50 cents per share on a one-tier tax-exempt basis for the financial year ended Dec 31, 2009. The dividend will be paid on May 20.
Yesterday, Venture shares closed 0.6 per cent higher at $9.86.
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