KUALA LUMPUR: JCY International Bhd, which disappointed investors in 2010 since its listing due to the slide in its share price and weak financial performance, said it managed to return to the black in the first quarter ended Dec 31, 2010 when compared with the preceding quarter.
The hard-disk drive (HDD) manufacturer said however, on a year-on-year basis, its earnings fell sharply to RM7.51 million in the first quarter ended Dec 31, 2010 from RM77.46 million a year ago.
It said on Friday, Feb 25 its revenue declined to RM438.90 million from RM528.20 million. It reported pretax profit of RM7.6 million. Earnings per share were 0.37 sen compared with 3.79 sen.
JCY said the group recorded lower revenue for current quarter mainly due to the lower average selling price (ASP) and depreciating US dollar against the ringgit. Its earnings were also impacted by the increase in the cost of production resulting from increase in the cost of raw material and increase in the labour cost.
When compared to the fourth quarter ended Sept 30, 2010, the revenue of about RM438.9 million and pretax profit of RM7.6 million was an improvement from the turnover of RM474.7 million and losses before taxation'' of RM25.2 million.
'The group's turnover decreased by approximately 7.5% due to a slight decrease in the sales volume for the higher sales value products shipped in the current quarter. The group had also turnaround from loss before tax of RM25.2 million to pre-tax profit of RM7.6 million due to better cost control and absence of significant foreign exchange losses in the current quarter.
'The outlook for the global economic remains uncertain and based on the report of an industry information service company, the demand for HDD will be slightly lower for the first quarter of 2011 due to HDD inventory overhang at PC companies. The group will continue to focus on its core business and continue to intensify its efforts to improve operational efficiency and cost management,' it said.
The hard-disk drive (HDD) manufacturer said however, on a year-on-year basis, its earnings fell sharply to RM7.51 million in the first quarter ended Dec 31, 2010 from RM77.46 million a year ago.
It said on Friday, Feb 25 its revenue declined to RM438.90 million from RM528.20 million. It reported pretax profit of RM7.6 million. Earnings per share were 0.37 sen compared with 3.79 sen.
JCY said the group recorded lower revenue for current quarter mainly due to the lower average selling price (ASP) and depreciating US dollar against the ringgit. Its earnings were also impacted by the increase in the cost of production resulting from increase in the cost of raw material and increase in the labour cost.
When compared to the fourth quarter ended Sept 30, 2010, the revenue of about RM438.9 million and pretax profit of RM7.6 million was an improvement from the turnover of RM474.7 million and losses before taxation'' of RM25.2 million.
'The group's turnover decreased by approximately 7.5% due to a slight decrease in the sales volume for the higher sales value products shipped in the current quarter. The group had also turnaround from loss before tax of RM25.2 million to pre-tax profit of RM7.6 million due to better cost control and absence of significant foreign exchange losses in the current quarter.
'The outlook for the global economic remains uncertain and based on the report of an industry information service company, the demand for HDD will be slightly lower for the first quarter of 2011 due to HDD inventory overhang at PC companies. The group will continue to focus on its core business and continue to intensify its efforts to improve operational efficiency and cost management,' it said.
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