SINGAPORE (Oct 30): Shares in Micro-Mechanics were up as high as $1.98 on achieving its "best quarterly results" so far.
Micro-Mechanics, the maker of high precision tools and parts used in the semiconductor industry, reported 1Q18 earnings rose 53% to $5.2 million.
This came on the back of revenue growth of 32.5% to $17.7 million, higher gross profit margin of 60.9% and a tight rein on expenses.
The group’s results in 1Q18 also grew sequentially, with both revenue and net profit increasing by 14.5% and 13.5% respectively compared to 4Q17.
Micro-Mechanics says it saw broad-based sales increases in its key geographical markets during 1Q18, led by its largest market in China where sales jumped 48.1% to $5.2 million and contributed 29.5% to group revenue.
Sales in Malaysia, its second largest market, increased 14.3% to $3.5 million to account for 19.5% of group revenue.
Sales in the US rose 58.5% to $2.8 million to rank as its third largest market.
CEO Chris Borch says, “The group delivered its best quarterly performance to-date in 1Q18. We continued to benefit from robust demand from customers in our major markets, reflecting the strong underlying growth of the global semiconductor industry since the beginning of 2017.”
According to statistics compiled by the Semiconductor Industry Association, worldwide chip sales increased about 20.5% during the eight-month period from January to August.
Based on the industry’s strong growth, the World Semiconductor Trade Statistics recently raised its forecast for world-wide semiconductor sales growth in 2017 to 17% from its previous prediction of 11.5%.
“We believe the semiconductor industry’s robust growth this year may herald a prolonged period of strong growth as chips are being increasingly used in nearly every aspect of our daily life. To sustain the Group’s growth over the long term, we will continue to focus on our customers and the value we bring to their businesses,” says Borch.
As at end Sept, Micro-Mechanics had total assets of $73.7 million, shareholders’ equity of $60 million, cash and cash equivalents of $25.4 million and zero debt.
As at 2.52pm, shares in Micro-Mechanics are up 5.1% or 9.5 cents at $1.95.
