SINGAPORE (Jan 27): Micro-Mechanics Holdings has delivered record 1H18 earnings ended Dec of $9.1 million, up 34.6% from the same period a year ago.
The manufacturer of high precision tools and parts for the semiconductor industry says the bottom line was driven by higher revenue, better gross profit margin and a continued tight rein on expenses.
The group achieved its highest-ever first half revenue of $33.3 million in 1H18, up 21.1% from 1H17. Gross profit margin in 1H18 also improved to 58.7% from 56.4% in 1H17.
For the 2Q18 ended Dec, the group reported a 16.1% increase in earnings to $3.9 million on the back of revenue growth of 10.3% to $15.6 million.
The group will be paying a higher interim dividend of 4 cents per share on Feb 13, compared to 3 cents per share a year ago.
According to the Semiconductor Industry Association, worldwide chip sales rose 22.6% during the five-month period from July to November 2017. The World Semiconductor Trade Statistics recently reported that it expects worldwide chip sales to grow 20.6% to a record US$408.7 billion for 2017, and to increase by another 7% in 2018.
Chris Borch, CEO of Micro-Mechanics, says, "Current market forecasts point to an upward trajectory for global chip sales in 2018... However, we expect to see continued price and cycle-time pressures as the chip industry is increasingly driven by price-sensitive consumer applications. We will also need to manage challenges from rising costs and shortage of skilled workers..."
As at Dec 31 2017, Micro-Mechanics had a sound financial position with total assets of $70.2 million, shareholders’ equity of $57.2 million, cash and cash equivalents of $22.4 million and zero debt.
Shares in Micro-Mechanics closed at $2.42 on Friday.
