Lacklustre 2HCY12 results

Singapore-listed tech companies reported lacklustre results in general during the recently concluded 2QCY12 reporting season. Within our sector coverage, only Micro-Mechanics (MMH) exceeded our forecast; while Venture Corporation (VMS), ECS Holdings (ECS), Valuetronics Holdings (VHL) and Karin Technology (reports semi-annually) all disappointed with their lower-than-expected earnings. Out of the latter four companies, all with the exception of ECS reported revenue which matched our expectations, which highlights the margin pressures faced by tech companies.