Powermatic Data Systems Ltd reported a net profit of S$0.77 million for the six months ended Sept 30, down 27 per cent year-on-year after softer sales of its wireless connectivity products and a smaller foreign-exchange gain.
Earnings per share slipped to 2.21 Singapore cents from 3.03 cents a year earlier. The board declared a special interim cash dividend of 10.0 cents per ordinary share (tax-exempt, one-tier), rebounding from no interim payout last year. Record and payment dates will be announced later.
Group revenue fell 18 per cent YoY to S$6.14 million. Wireless connectivity products contributed all of the top line, with sales to the United States and Europe contracting sharply while shipments to Asia nearly doubled. Segment profit before tax from the wireless division narrowed to S$0.99 million (–35 per cent YoY). The property segment, which is transitioning from rental to redevelopment, generated S$0.07 million in pre-tax profit, mainly from a S$0.07 million property-tax refund, while corporate costs led to a S$0.15 million pre-tax loss. Group pre-tax profit declined 39 per cent to S$0.91 million.
Interest income rose 43 per cent to S$0.74 million, reflecting higher deposit rates and larger cash holdings of S$63.1 million. Marketing, distribution and administrative expenses increased 12 per cent to S$2.36 million, driven by share-based payments and contractual staff costs. Foreign-exchange losses moderated to S$0.53 million from S$0.70 million a year earlier.
Key headwinds included weaker demand as customers continued to work through elevated inventories, delaying migration from Wi-Fi 6 to Wi-Fi 7 products. The shift led to a 49 per cent fall in European revenue and a 38 per cent drop in U.S. sales.
On strategy, Powermatic is investing in research and development to expand its Wi-Fi 7 portfolio and address “diverse customer needs” ahead of a broad technology refresh cycle. In its property arm, the group is redeveloping its Harrison Road freehold site into a multi-storey food factory. By end-September, it had sold about a third of the units, with profit to be recognised on a percentage-of-completion basis from fiscal 2026. Development expenditure reached S$16.6 million, while deposits from buyers lifted contract liabilities to S$8.2 million.
Management flagged improving replenishment orders for legacy Wi-Fi products as inventories normalise and cited Singapore’s upgraded 2025 GDP growth forecast of 1.5–2.5 per cent as supportive for the property market. However, the company cautioned that the economic outlook remains clouded by external risks and noted a recent legal claim by its former chief executive officer, saying it will update shareholders on any material developments.