Tuesday, November 30, 2010

JCY posts 4Q losses of RM22.55m

KUALA LUMPUR: Hard-disk drive manufacturer JCY International Bhd posted net losses of RM22.55 million in the fourth quarter ended Sept 30, 2010 following a decline in the average selling price (ASP) and adverse foreign exchange losses.

It said on Tuesday, Nov 30 revenue declined 3% to RM485.97 million from RM501.21 million a year ago while loss per share was 1.1 sen compared with earnings per share of 3.59 sen.

Explaining the losses, JCY said the forex losses were due to the depreciation of the US dollar against the ringgit.

'In addition, the cost of production increased due to higher raw material cost and labour cost resulting from shortage of workers in Malaysia,' it added.

However, for the financial year ended Sept 30, 2010, it still made a net profit of RM176.38 million, a decline of 14.9% from RM207.28 million a year ago. Revenue was higher at RM2.04 billion compared with RM1.758 billion in the previous corresponding financial year.

JCY, in its outlook, said consumer spending in the US and Europe was still weak and the on-going debt crisis of some of the European countries had continued to affect the recovery of the demand for HDD products.

'The group has started supplying HDD components to Korean and Japanese customers. The group will continue to focus on its core business and continue to intensify its efforts to increase its revenue and will focus on improving operational efficiency and cost management,' it said.

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