Increased creditors and accruals led to higher costs.
Excelpoint Technology (Excelpoint) closed FY15 with US$4.4m in net profit, down from US$7.1m in FY14.
According to the company’s media release, the decline is on back of a US$2.3m spike in sales and distribution expenses, a US$400,000 jump in interest costs, and a US$300,000 climb from in other expenses. The latter comprised mainly of provisions for inventory and doubtful debts.
Excelpoint asserts that hike in costs is mainly attributed by the increase in trade creditors and accruals, which is partially offset by the climb on trade debtors and stock balances.
At the end of the financial years, cash and short-term deposits amounted to US$10.7m, compared to FY14’s US$11.8m.
Excelpoint Chairman and CEO Albert Phuay notes that looking forward, the electronics industry may see some opportunities in view of the new solutions and products that were announced at the recent Consumer Electronics Show. Phuay also says that while Excelpoint will be preparing to pounce on these opportunities, the company will also exercise caution in business management.
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