In a statement today, the information, communication, and technology (ICT) company said the return to profitability was mainly due to the higher gross margin for the current quarter.

Revenue in Q2 decreased by 45.1 per cent to RM33.59 million from RM61.21 million, mainly due to the lower revenue from the local and Asian markets for its ICT products business segment.

The company said its manufacturing business of resin compounds for wire and cable and resin compounds for other industries ceased its operations on September 22, 2020.

Artroniq managing director and chief executive officer Chin Yew Thong said it had been a challenging business environment for the company as it faced multiple headwinds in the global economy.

Higher-than-expected inflation, especially in the US and major European economies, has led to a global monetary tightening.

“Meanwhile, China has also seen a sharp slowdown amidst the lockdowns in some major cities to contain the spread of Covid-19 infections.

“As a company, we continued to review, revisit, and realign our next business strategies to navigate these economic uncertainties. As a result, we are proud to return to the black in Q2 FY22, and we will continue to improve on our operational efficiency and expand our income,” he said.

For the six months, Artroniq recorded a net loss of RM228,000 from a net profit of RM4.8 million, while revenue eased 6.9 per cent to RM96.32 million from RM102.95 million.

In a separate filing with Bursa Malaysia, Artroniq said its wholly-owned subsidiary, Artronix Sdn Bhd (ATX), has been appointed as a non-exclusive distributor to market products by Even Systems Co Ltd.

The products include equipment, software licenses, electronic products, and sealed software packages.

Even Systems and its US-based subsidiary, Pioneer Solution Inc, design and manufacture a complete line of industry-specific all-in-one computers, touch screen monitors, kiosks, and tablets.

Even Systems’ market-based solutions have been deployed in retail, hospitality, factory automation, gaming, and healthcare environments.

“We are proud to be the distributor for their products as it reflects our capabilities to meet their global standards,” said Chin.

The distribution agreement is expected to help to create additional ancillary income for ATX and Artroniq.