Global chip crisis hampers local tech firms


Global chip shortage

JOHANNESBURG, (CAJ News) THE global chip shortage continues impacting on local technology companies.

Among those whose revenues have been hit are the Johannesburg Stock Exchange-listed Net 1 UEPS Technologies.

The provider of payment solutions, transaction processing services and financial technology across multiple industries, disclosed its revenues decreased 4 percent due to lower hardware sales as a result of the global chip shortage and fewer prepaid airtime sales.

Net 1 UEPS announced the setback as it released second quarter 2022 and second quarter 2021 results on Thursday.

Revenue of $31,1 million, was a decrease of the above-mentioned 4 percent from Q2 2021.

Net 1 UEPS announced a 38 percent recovery in operating loss to $9,4 million in Q2 2022, reflecting the direct cost reductions in its Consumer business.

It disclosed a 42 percent improvement in adjusted EBITDA loss to $7,1 million, underpinned by the turnaround in the same segment.

Net 1 UEPS expensed $1,5 million of transaction costs related to the Connect Group acquisition.

The dollar was 1 percent stronger against the Ran during Q2 2022, which impacted the reported results.

Commonly cited causes for the global chip shortage include the COVID-19 pandemic, the China–United States trade war and various severe weather incidents.

– CAJ News





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