Update On Uchi

Short posting:

Uchi Technologies reported its earnings last nite. It was disappointing. It's first half fiscal year net profit has decreased by some 18.21% compared to previous fiscal year first half earnings. Current first half earnings totals only 34.970 million compared to 42.754 million the previous year.

Some issues worth pondering. Has it's spectacular growth finally ended? Signs of margin pressure exist. Would the issue snowball? And last of not least, one should consider the durability of Uchi products now given the current economic environment.

Two previous blog posting that should be read, Review Of Uchi Again. and Uchi and its ESOS ( the ESOS issue is still a huge concern)

Oh the stock price has clearly plunged. Like Peter Lynch advices perhaps one is better off not to have a fixation on stock prices.

Stock may appear cheap based on current prices but perhaps now it's not a time to be a hero.

Company made the following comments:

• Revenue in Ringgit Malaysia for the period ended June 30, 2008 (RM70.361 million which equivalent to USD21.850 million), decreased by 11% as compared to June 30, 2007 (RM79.128 million which equivalent to USD22.808 million), mainly due to:
  
  (a) Appreciation of Ringgit Malaysia against US Dollar (6 months ended June 30, 2008: RM3.22:USD1; 6 months ended June 30, 2007: RM3.47:USD1).
  
  (b) Deferment of sales order in consequence of customer’s logistic planning restructuring.