18 May 2012

Notion Vtec earnings rose 43.5% to RM 15.53 million on strong orders for HDD and camera segments from affected clients due to the severe flooding in Thailand last year

(NOTION closing stock price yesterday (17.5.2012) was RM 1.16)

Notion Vtec Bhd returned to the black in the second quarter ended March 31, 2012 as earnings rose 43.5% to RM15.53mil from RM10.82mil a year ago.

The hard-disk drive manufacturer (HDD) said on Thursday the turnaround from the losses in the preceding quarter was underpinned by strong orders from new customers and recovery orders from earlier affected clients due to the severe flooding in Thailand last year.

Notion Vtec said turnover increased 56.7% to RM84.51mil from RM53.93mil. Earnings per share were 10.06 sen compared with 7.01 sen.

"This revenue of RM84.5mil is a new quarter record for the group compared to the average pre-flood quarterly revenue of RM58 million, is 46% higher. All segments recorded double digit growth when compared to pre-flood revenue and in particular the HDD and camera segments were out-performers," it said.

Notion Vtec said that from a December quarter loss of RM4.8mil, the March quarter recorded RM15.6mil profit after-tax (PAT) with a net margin of 18.4%.

It said the group had to carry extra cost by hosting a group of engineers and workers from a new customer for a few months to help expedite the scaling up of its 2.5-inch base plate production.

"For the month of April 2012, we wish to report that the revenue was RM33 million which was similar to month of March. We are currently experiencing shortage of labour, CNC machines and space to meet renewed purchase orders. The strong orders may be attributed to unfulfilled orders of components arising from the Thai flood impact but also from the new customers. This trend will continue into the remaining FY2012 quarters and beyond," it explained.

For the first half, the earnings fell 55.8% to RM10.70mil from RM24.23mil in the previous corresponding period, mainly due to the losses in the first quarter ended Dec 31, 2011.

Revenue, however, increased by 8.9% to Rm124.14mil from RM113.91mil.

Source: www.thestar.com.my

0 comments:

Post a Comment