Venture

Venture: Weaker-than-expected results. 3Q rev at $583.6m -13.9% yoy -7.2% qoq, net profit at $36.4m -27.2% yoy -15.5% qoq. Co highlighted despite volume growth the steep USDSGD depreciation 11.0% from a yr ago impacted revenue. Rev in USD terms fell 3.1% yoy compared to 13.9% in SGD terms.

Co recorded yoy growth in the Computer Peripherals & Data Storage (+13.6% yoy), Retail Store Solutions & Industrial Products (+11.6%) and the Test & Measurement/Medical/Others segments (+9.5%). However this was not sufficient to offset the more than 20% volume decline in the Networking & Communications and the Printing & Imaging segments due to slower new product ramp-up and lower demand.

However, co has maintained strong operating cash flow of $101m with net cash position of $233m up from 2Q balance of $136m which allows co to maintain its dividend yield of approx 8%. Co posted EPS of 12.9c for this quarter and most recently issued a dividend of $0.55 per share.

Mgmt has guided that customers are starting to adopt a more cautious stance and expects weaker revenue numbers going into 4Q11

Citi maintains Buy with TP$8.00. BNP maintains Buy with TP cut from $8.46 to $7.85 on Venture’s ex-growth nature and continued poor macro environment.