(Alliance News) - Technoprobe Spa announced Wednesday that its board of directors reviewed and approved consolidated results as of June 30 reporting a 53% drop in profit to EUR31.1 million from EUR66.6 million in the same period last year.

Consolidated revenues amounted to EUR196.3 million, down 22 percent from the first half of 2022 when they were EUR250.3 million, "due to the continued decline in consumer demand for devices such as smartphones and computers and to the high level of inventories of the same devices recorded by customers," the company specified in a note.

Consolidated EBITDA was EUR64.7 million, down 39 percent from the first half of 2022, when it was EUR106.7 million.

The reduction in margins compared to the previous year "also reflects the company's strategic decision to maintain the current production structure and resources employed in order to ensure an adequate response to the expected recovery in volumes," the company note says.

Consolidated Net Financial Position is positive at EUR360.3 million down 11 percent from EUR403.4 million in the first half of 2022.

Looking ahead, geopolitical tensions between the U.S. and China related to limits imposed on technology exports to Asia, the general decline in consumer demand for devices such as smartphones and computers, and high inventory levels at major players in the industry will still weigh on the semiconductor sector later this year. In contrast, the automotive, industrial applications and artificial intelligence segments are confirmed to be growing. The recovery of the entire semiconductor supply chain is confirmed to be expected in the later part of 2023, driven by a general recovery in consumption and the conclusion of the aforementioned de-stocking processes currently underway."

Technoprobe's stock is down 3.3 percent at EUR7.83 per share.

By Chiara Bruschi, Alliance News reporter

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