Semiconductor play Micro-Mechanics' earnings grow 42.3% in Q1

MICRO-MECHANICS (Holdings) on Thursday reported that its net profit rose 42.3 per cent to about S$4.7 million for its first quarter ended Sept 30, from S$3.3 million a year ago.

The mainboard-listed company, which manufactures high-precision tools and parts for semiconductor applications, said its bottom line was boosted by a "record" quarterly revenue, despite facing challenges during the coronavirus pandemic.

Earnings per share stood at 3.35 Singapore cents for the quarter, up from 2.35 cents in the same period last year.

Revenue increased 18.3 per cent year on year to S$18.1 million, from S$15.3 million previously. This was in tandem with the steady growth of the global semiconductor industry, said Micro-Mechanics.

The company saw a year-on-year growth in sales across the majority of its geographical markets during the three months, particularly in Singapore, China and the US.

Chris Borch, chief executive of Micro-Mechanics, said the group is automating its operations around processes that are repeatable, scalable and cost-effective.

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"This includes digitalising our workflows for efficiency, mobility and the ability for our people to work remotely," he added.

No dividend was declared for the first quarter of FY2021, in line with the group's practice to recommend dividends only in the second and fourth quarters of each financial year.

For FY2020, the group will distribute a final dividend of S$0.05 per share and a special dividend of S$0.02, subject to shareholders' approval at the Oct 30 annual general meeting.

Shares of Micro-Mechanics fell S$0.04 or 1.5 per cent to trade at S$2.61 as at the midday break on Thursday.