SINGAPORE (Feb 6): Micro-Mechanics Holdings posted earnings of $3.4 million for 2QFY17, a 23.5% improvement over the previous corresponding quarter.
The jump in earnings came on the back of the group’s record quarterly revenue of $14.2 million, 16.3% higher than in 2QFY16, as sale improved in Singapore, Malaysia and the US.
Micro-Mechanics is the manufacturer of high precision parts and tools for the semiconductor industry. In a release to the Singapore Exchange, the group explained that sales in Singapore had risen 74.3% to $1.1 million and sales in US rose 27.5% to $2.2 million after the group decided to focus all five of its factories on manufacturing parts and tools for the process-critical applications of the semi-conductor industry.
The group also recorded other income of $385,000 during the quarter, compared with the other income of $15,000 in 2QFY16, arising from the net gain from the disposal of machinery and foreign exchange gains.
The group has declared a 3 cent interim dividend for the period, 1 cent higher than the 2 cents paid out in 2QFY16.
Micro Mechanics says that the slow growth environment, rising costs, and shortage of skilled workers means its operating environment will remain challenging, but emphasised that its shift in business strategy is the right one for the group.
Shares in Micro Mechanics are trading 7 cents higher at 94.5 cents on Monday.
