KUALA LUMPUR: K-ONE TECHNOLOGY [] BHD [] net profit for the second quarter ended June 30, 2010 jumped significantly to RM2.2 million from RM315,000 a year earlier due to increase in sales and cost reduction exercises.
Revenue rose to RM33.77 million from RM15.34 million a year ago, while earnings per share was 1.99 sen.
For the six months ended June 30, K-One's registered net profit RM3.88 million compared to net loss RM1.19 million last year.
In a filing to Bursa on Friday, July 30, the company said its sales revenue increased by 121% comparing the current quarter and the same quarter last year.
The increase in sales was expected and attributed to the continuing momentum generated from the mass production of new network cameras, new electronic sports headlamps and new USB cables, it said.
'In fact, mobile phone accessories sales picked up substantially and contributed significantly in overall sales for this current quarter.
'The significant improvement in profit is attributable to the increased sales, the benefits of economies of scale, vigilant on-going cost reduction exercises and last but not least, the elimination of foreign exchange risks caused by foreign hedging contracts, which the group has replaced with natural hedging ie paying key suppliers in the same inward remittance currency, thus markedly reducing foreign exchange risks,' it said.
On its prospects, the company said it was optimistic that the group would continue to show escalating sales growth in the second half of 2010.
It said the demand for its products, which were categorised as mobile phone accessories, computer peripherals and consumer technology products looks vibrant because consumers its global OEM customers seemed to still have an appetite for consumer electronic products.
'The recent launch of the iPad is a reflection of this insatiable appetite for innovative consumer electronic products.
'Furthermore, our second half sales as in the past many years have always been much higher than the first. We therefore expect the sales and profit performance for the full year to be especially strong,' it said.
Revenue rose to RM33.77 million from RM15.34 million a year ago, while earnings per share was 1.99 sen.
For the six months ended June 30, K-One's registered net profit RM3.88 million compared to net loss RM1.19 million last year.
In a filing to Bursa on Friday, July 30, the company said its sales revenue increased by 121% comparing the current quarter and the same quarter last year.
The increase in sales was expected and attributed to the continuing momentum generated from the mass production of new network cameras, new electronic sports headlamps and new USB cables, it said.
'In fact, mobile phone accessories sales picked up substantially and contributed significantly in overall sales for this current quarter.
'The significant improvement in profit is attributable to the increased sales, the benefits of economies of scale, vigilant on-going cost reduction exercises and last but not least, the elimination of foreign exchange risks caused by foreign hedging contracts, which the group has replaced with natural hedging ie paying key suppliers in the same inward remittance currency, thus markedly reducing foreign exchange risks,' it said.
On its prospects, the company said it was optimistic that the group would continue to show escalating sales growth in the second half of 2010.
It said the demand for its products, which were categorised as mobile phone accessories, computer peripherals and consumer technology products looks vibrant because consumers its global OEM customers seemed to still have an appetite for consumer electronic products.
'The recent launch of the iPad is a reflection of this insatiable appetite for innovative consumer electronic products.
'Furthermore, our second half sales as in the past many years have always been much higher than the first. We therefore expect the sales and profit performance for the full year to be especially strong,' it said.
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