SkyeChip Bhd’s revenue for the first quarter ended June 30, 2026 (1QFY27) came in at RM49.6 million, broadly in line with Kenanga Research’s and consensus expectations.
Kenanga said the quarterly revenue accounted for about 24% of its full-year forecast and 25% of consensus estimates.
Revenue was largely derived from the group’s silicon intellectual property (IP) and custom application-specific integrated circuit (ASIC) businesses, which contributed 52.9% and 46.9%, respectively.
The United States and China remained SkyeChip’s key markets, accounting for approximately 54.6% and 42.1% of total revenue, respectively.
No dividend was declared for the quarter.
Sequential decline reflects strong previous quarter
On a quarter-on-quarter basis, revenue declined 16% from RM59.0 million, mainly due to a 23% drop in revenue from the silicon IP segment.
The custom ASIC segment was relatively resilient, with revenue declining 6% sequentially.
Kenanga said the sequential moderation was not unexpected as 4QFY26 had been an exceptionally strong quarter, supported by a higher number of projects reaching billable milestones.
Gross profit margin declined by 22 percentage points quarter-on-quarter to 42%, although Kenanga said it remained broadly in line with SkyeChip’s three-year historical average of around 44%.
Profit before tax (PBT) fell 55% to RM14.4 million, partly due to RM2.5 million in one-off listing expenses.
As a result, net profit declined 56% sequentially to RM13.9 million.
Custom ASIC demand supports outlook
Kenanga maintained a positive outlook on SkyeChip, citing the structural shift towards customised ASICs as companies increasingly seek chips tailored to specific performance, power-efficiency and integration requirements.
The research house said the trend is expanding beyond large technology companies to smaller firms and start-ups, which are more likely to outsource chip-design work.
This plays to SkyeChip’s strengths in memory-interface, network-on-chip (NoC) and die-to-die (D2D) IP, as well as custom ASIC solutions.
Despite its relatively short operating history, Kenanga noted that SkyeChip has demonstrated execution capabilities through relationships with high-profile customers, including Cerebras Systems.
Such customer relationships could support follow-on licensing, non-recurring engineering (NRE) work and eventual royalty income, as proven IP and familiarity with customers’ chip architectures can increase the likelihood of involvement in subsequent product generations.
However, Kenanga cautioned that SkyeChip’s quarterly earnings could remain lumpy, given that revenue recognition is tied to the achievement of project milestones.
As a result, the research house believes annual earnings would provide a more meaningful gauge of the company’s underlying performance.
Earnings forecasts raised
Following the results, Kenanga raised its FY27 and FY28 profit forecasts by 6% and 5%, respectively, and introduced its FY29 earnings forecas
