UMS Holdings

[Tiggerbee]

[Image: 102w8wp.jpg]

One bad quarterly results in a year is common.
Two bad quarterly results in a row did happen before.
Three bad quarterly results in a row has yet to happen…………. 
 
Assuming 2Q, 3Q and 4Q2016 results would be as bad as 1Q2016 but would still manage to generate 5m of FCF in each quarter, giving rise to FCF of 20 m for FY2016.
 
To declare FY2016 DPS of 6 cents, UMS would need to top up 5.75 m from it cash hoard which it could easily afford to do.
 
Yearly DPS of 4 cents => 17.17 m
Yearly DPS of 5 cents => 21.46 m
Yearly DPS of 6 cents => 25.75 m
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That's a nice chart showing a clear down trend in revenue.. We would get more clues when Applied Materials announce their earnings results on 19th May.