FY2008 was a challenging year for the electronics industry. The rise in inflation and oil prices earlier in the year followed by the collapse of banking giants had resulted in a global financial meltdown. The financial crisis impacted business and consumer confidence. As a result, the electronics industry came faced with unprecedented volatility and intense pricing pressures as consumers cut spending.
Amidst such a volatile and difficult environment, Excelpoint's performance was impacted. The Group achieved revenue of US$436.5 million in FY2008. The Group's gross profit stood at US$31.3 million with a gross margin of 7.2% in FY2008. Through continued cost containment measures and streamlining of the Group's business, total operating expenses declined to US$33.4 million in FY2008. This was however, partially offset by a reduction in other income. All in all, the Group recorded a loss after taxation of US$1.5 million in FY2008.
Bearing in mind the difficult year, the Group focused on containing costs, inventory rationalisation and management, and kept to our core business strategies. Early in the year, the Group implemented several cost-cutting programmes such as hiring freeze, disposal of non-core business operations as well as reductions in salaries for the management team and overhead expenses. We also restructured and streamlined our business, aligning us closer to customer segments. Among our core business strategies were the rationalisation of our product mix to focus on higher-value added business in order to maintain and improve margins, as well as entering into markets and segments which were less susceptible to consumer sentiments and which offered potential for higher returns.
In undertaking these measures and strategies, Excelpoint had sharpened its competitive edge. With our lean operations, focus on core competencies and improved efficiencies, Excelpoint is able to better service and add value to our customers.
As we move into FY2009, which had been predicted to be an even more difficult year, we believe that Excelpoint will be positioned for the eventual upturn in the economy. We are optimistic that the lessons we have learnt and the practices we have implemented during these times will help us navigate through the challenging business environment. Going forward, we will continue to adhere to our core business strategies that will enable us to maintain or grow customer relationships and to gain returns and better margins. In this climate, there will also be potential opportunities for strategic alliances and collaborative partnerships and we will be poised to take advantage of any such opportunities in the marketplace.
Given the uncertain economic outlook and the impact of the global credit crunch, the Board is mindful of the need to conserve and carefully manage the Group's cash resources and does not recommend payment of a final dividend for FY2008.
In ending, I would like to express my sincere thanks to our Board of Directors for their support and guidance. I would also like to extend my warmest appreciation to our employees, shareholders, customers and partners for their continued support.