KUALA LUMPUR: Oppstar Bhd registered narrower net loss of RM62,000 in the second quarter ended Sept 30, 2026 (Q2 FY27), compared with RM3.2 million a year ago, as revenue surged 71 per cent to RM12.6 million.
The higher revenue translated into RM7,000 profit before tax during the quarter, a sharp turn from a loss before tax of RM3.32 million in the same quarter last year, the integrated circuit (IC) design company said.
The robust year-on-year performance was predominantly fueled by the IC design segment.
Revenue from specific design services grew by RM3.79 million due to heightened demand for engineering services, while post-silicon validation services saw a RM1.45 million increase driven by customer demand, said Oppstar.
Despite the top-line growth, Oppstar faced higher operational expenses. Cost of sales increased by RM1.03 million, primarily due to higher labour costs, though this was partially offset by lower travelling and design tool subscription costs.
Administrative expenses also rose by RM0.37 million due to increased personnel and travelling costs. However, the bottom line was supported by a RM0.58 million reversal of impairment loss on trade receivables following a successful collection from a customer.
While year-on-year figures reflect strong growth, Oppstar experienced a 20.64 per cent sequential decline in revenue, dropping from RM15.86 million in the immediate preceding quarter to RM12.59 million.
This contraction was mainly attributed to a RM4 million decrease in revenue from turnkey design services due to the timing of project recognition. Consequently, the profit before tax also moderated from RM4.41 million in the preceding quarter to RM7,000.
Looking ahead, Oppstar expects the current financial year to outperform the preceding year, underpinned by strong, AI-driven demand in the semiconductor industry. The structural shift toward AI-related chips is widening the company’s project pipeline.
To capitalize on this trend, Oppstar intends to move up the value chain, transitioning from a predominantly service-based model to a more integrated role within the AI ecosystem.
This includes targeting high-value turnkey design projects and exploring selective collaborations in AI hardware development, specifically for architectures like AI accelerators and Neural Processing Units (NPUs).
However, the company noted that the global shortage of skilled semiconductor engineers remains a structural challenge, placing upward pressure on remuneration and overall personnel costs.
Oppstar plans to r