Business
Highway Holdings Reports Fiscal 2021 Fourth Quarter and Year-end Results
HONG KONG--(BUSINESS WIRE)-- Highway Holdings Limited (Nasdaq: HIHO) today reported results for its fiscal year ended March 31, 2021 – reflecting the
About this update from Highway Holdings Limited
[{"type":"text","content":" HONG KONG--(BUSINESS WIRE)--\nHighway Holdings Limited (Nasdaq: HIHO) today reported results for its fiscal year ended March 31, 2021 – reflecting the negative impact of the COVID-19 pandemic and the military takeover in Myanmar on the company’s operations in that country and the general shortage of raw materials and components, including electronic components and semiconductor chips.\n\nNet sales for the fiscal 2021 fourth quarter were $1.8 million compared with $2.9 million a year ago. The decrease in sales was directly related to the closure of the company’s factory in Myanmar for a two week-period in March as a result of the military takeover in that country, as well as the shortage of raw materials and components that limited production. Net loss for the quarter was $551,000, or $0.14 per share, compared with net income of $563,000, or $0.14 per diluted share, a year earlier.\n\nNet sales for fiscal 2021 were $9.2 million compared with $12.6 million a year ago. Net loss for fiscal 2021 was $461,000, or $0.12 per share, compared with net income of $686,000, or $0.18 per diluted share, a year earlier.\n\n“The decrease in net sales in our fourth quarter, as well as for the full fiscal year, was primarily attributable to the February 1, 2021, coup d’état in Myanmar, the ongoing business slowdown caused by the global pandemic and the raw materials and parts shortage that started at the end of 2020. As a result of the unrest and a temporary lack of workers at our factory in Myanmar, together with the shortage of material supply, we had an interrupted production flow for almost all of March 2021. Fortunately, the majority of our workers have returned, and we are again fully operational. However, the loss of production in March had a severe negative impact on our fiscal 2021 financial performance, since March traditionally is one of our strongest months,” said Roland Kohl, chairman, president and chief executive officer.\n\nHe noted fiscal 2021 financial results were further impacted during most of the fourth quarter by world-wide material shortages, including electronic components and semiconductors, with a corresponding decrease in sales to certain European customers and the delayed manufacture of a video gaming product -- which had to be deferred from November 2020. It was not until the current fiscal year that we finally could...