VTech Holdings has reported a 47 per cent slump in year-on-year net profit for the six months to September 30 despite a 3 per cent increase in turnover. The electronics company was hurt by slower sales of its learning products, currency loss and higher costs due to delayed shipment by a chip supplier. Attributable profit amounted to US$26.4 million for the period on turnover of $520.8 million. Despite lower profits, the company proposed an interim dividend of five cents per share, the same as the previous year. Chairman Allan Wong Chi-yun said unexpected delays by the chip supplier - whose technology needed fine-tuning - had caused a few million dollars in additional product design and shipment costs. 'We will only work with partners with proven technology in the future . . . we will also be more conservative in estimating lead time of product roll-outs,' Mr Wong said. Learning product sales fell 15.8 per cent in the period, due to competition from personal computers which saw substantial price drops. VTech was forced to increase the proportion of learning products aimed at lower-age youngsters, which had lower profit margins. The euro's depreciation of about 12 per cent in the period also cost the company about $5 million as about 60 per cent of its learning products were quoted in euros. Mr Wong said the company expected better second-half sales of its cordless phones. He said full-year sales of learning products were likely to be lower than a year earlier. The earthquake in Taiwan had also delayed production during the September-October peak production season which would affect Christmas sales, he said. Mr Wong hoped production of mobile phones and 2.4 gigahertz cordless phones early next year, as well as sales from newly launched email-machines and its related Internet service provider operation would help bolster profits.