Avi-Tech Holdings Limited has announced a net loss of $1m for the first half of 2026, as revenue fell to $8.7m due to challenging market conditions. The Singapore-based company, which provides services to the semiconductor and electronics sectors, cited softer demand and higher costs as key factors impacting its financial performance.
The company’s CEO, Lim Eng Hong, highlighted the difficulties faced by the Engineering segment, which saw revenue drop to $2.6m from $3.2m in the same period last year. This decline was attributed to project deferments and reduced demand, particularly in the automotive and industrial sectors, which have been affected by an inventory glut.
Despite these challenges, Avi-Tech maintained a strong liquidity position with a cash balance of $37.5m. The company is focusing on strategic diversification, expanding into advanced load boards and Internet of Things (IoT) solutions to enhance resilience. Lim noted that whilst near-term revenue growth is expected to remain subdued, there are signs of inventory levels normalising.
Looking ahead, Avi-Tech is cautious about the global operating environment, citing geopolitical tensions and trade restrictions as ongoing concerns. However, the company is positioning itself to seize opportunities as market conditions stabilise, with plans to venture into the high-growth segment of Automated Test Equipment Load Boards and advance its IoT capabilities through a proposed merger and acquisition with Create Technologies.
The Board has decided not to declare an interim dividend, prioritising financial strength and strategic investments to support long-term growth.
