Innotek shares fell 6.5% today to S$0.50 on the disappointing Q1-2011 results and more importantly its sombre outlook for Q2-2011 where revenue was forecasted to be lower than Q1-2011.  Other things being equal, this would suggest a loss in Q2-2011.

The rise in costs from raw materials and labour was already evident in Q4-2010 for Innotek but guidance following the full year remained positive and pointed to growth over 2010 from new products which enjoy higher margins.  This better than expected outlook was derailed when the earthquake and Tsunami struck Japan which created supply chain bottle necks and delayed the launching of new products.  Prior to this event, the company was expecting a strong Q2-2011 ...