Oppstar recorded narrower net loss in Q2 as revenue surges 71pct

Oppstar Bhd reported a narrower net loss of RM62,000 in Q2 FY27, significantly down from RM3.2 million in the same quarter last year, due to a 71% surge in revenue to RM12.6 million. The increase in revenue led to a RM7,000 profit before tax, a stark contrast to the RM3.32 million loss before tax in the previous quarter. The growth was primarily driven by the IC design segment, with revenue from specific design services rising by RM3.79 million and post-silicon validation services up by RM1.45 million, both attributed to increased customer demand.

However, higher operational expenses offset some of the growth, with the cost of sales increasing by RM1.03 million mainly due to higher labor costs, and administrative expenses rising by RM0.37 million due to increased personnel and traveling costs. Oppstar also benefited from a RM0.58 million reversal of impairment loss on trade receivables after successful collections.

Despite strong year-on-year growth, the company saw a 20.64% sequential decline in revenue, dropping from RM15.86 million to RM12.59 million, mainly due to a RM4 million decrease in turnkey design services. Looking ahead, Oppstar anticipates a better year as the semiconductor industry increasingly adopts AI-driven chips, expanding its project pipeline.

The company plans to move up the value chain, focusing on high-value turnkey design projects and collaborations in AI hardware development, including AI accelerators and NPUs. However, the global shortage of skilled semiconductor engineers remains a challenge, leading to increased personnel costs.