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Micro-mechanics posts 28.4% jump in Q1 profit on record quarterly sales
MICRO-MECHANICS (Holdings) reported on Wednesday that its net profit for the fiscal first quarter ended Sept 30, 2015, rose 28.4 per cent from a year ago to S$3.6 million.
Revenue grew 4.3 per cent to S$13.6 million, its highest-ever quarterly sales, thanks to the higher sales of its semiconductor tooling business which accounted for 87 per cent of the group's revenue.
Micro-mechanics said although the global semiconductor industry experienced slower sales in July and August, its semiconductor tooling segment, which serves customers involved in the assembly and testing of semiconductors, posted record quarterly sales of S$12 million during the quarter. This was driven mainly by continued sales growth in China and Taiwan.
The group's other income increased 88.5 per cent from a year ago to about S$518,000 during the quarter due mainly to a foreign-exchange gain arising from the appreciation of the US dollar, and gain from disposal of machines.
During the quarter, Micro-mechanics' subsidiary in the United States, which houses its Custom Machining & Assembly (CMA) division, reported a loss of S$475,000, including non-cash depreciation expenses of S$343,000.
The group expects to complete the last major phase of its plans to build a state-of-the-art 24/7 Machining facility by Q2 2016 in order to meet the more stringent demands of its customers.
"We are looking forward to shifting our energies to working with customers to engineer more new parts and to growing the CMA division's top line," the company said.