Micro-Mechanics (Holdings) or MMH has reported a net profit of $3.1 million for the 1QFY2025 ended Sept 30, 14% higher y-o-y.
Earnings per share (EPS) for the quarter stood at 2.21 cents, 13.9% higher y-o-y.
Revenue rose by 2.5% y-o-y to $16.2 million in line with an increase in global semiconductor sales and due to increases across the group’s two business segments in consumable tools and wafer fabrication equipment parts (WFE). On a q-o-q basis, group revenue rose by 8.8%, making this the third straight quarter of revenue increases.
Revenue from consumable tools rose by 1.4% y-o-y to $12.7 million while revenue from MMH’s WFE segment rose by 6.7% y-o-y to $3.5 million during the period led by operations at MMH’s US subsidiary.
The group said it achieved profitability at its US subsidiary after restructuring efforts in FY2024 sharpened its engineering focus for the WFE sector along with an optimised cost structure.
Gross profit for the quarter rose by 6.5% y-o-y to $8.2 million while gross profit margin increased by 1.9 percentage points y-o-y to 50.7%. The higher gross profit margin was thanks to better operating leverage and product mix.
As of the quarter, MMH generated positive operating cash flow of $4.1 million and free cash flow of $2.8 million.
“We are pleased that our efforts are delivering positive results as we continue to navigate the complexities of macro externalities and industry headwinds beyond our control,” says Christopher Borch, founder and CEO of MMH. “With a strategic focus on allocating our resources to advance the ‘FiveStar Factory’ initiative, we are enhancing our competitiveness for long-term sustainable growth. Going forward, we are fully committed to sustaining this trajectory to realise long-term value creation for our shareholders.”
Looking ahead, the group sees that the global semiconductor industry is “in the advanced stages of rebalancing production and inventory”.
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However, with the ongoing macroeconomic and geopolitical uncertainties, MMH says it remains “cautiously optimistic” about the continued recovery of the industry.
Shares in MMH closed 5 cents higher or 3.03% up at $1.70 on Oct 30.
