KUALA LUMPUR: NOTION VTEC BHD [] net profit for the second quarter ended March 31, 2011 fell 11.33% to RM10.76 million from RM12.14 million a year earlier due mainly to lower revenue from its camera segment.
Revenue for the quarter dipped to RM53.93 million from RM56.71 million in 2010. Earnings per share was 7.01 sen while net assets per share was RM1.62.
The company declared an interim gross dividend of 2 sen per share and an interim tax-exempt dividend of 1 sen per share in respect of the financial year ending Sept 30, 2011.
For the six months ended March 31, Notion's net profit fell to RM24.15 million from RM26.49 million on the back of revenue RM113.91 million.
On its outlook, Notion said the continuing weakening of the US dollar was of concern to exporters and that the decline had not abated.
It said the hard disk drive industry saw a further consolidation of five major makers to now only three major makers with the recent acquisition of Hitachi GST by Western Digital and Samsung by Seagate.
It said this was a sign of a maturing industry but the survival of the component makers would depend on R&B. scalability and ability to achieve sustainable cost savings in manufacture.
With fewer HDD makers, the price environment might improve and be more conducive, it said.
It also said while the Japan earthquake was an unexpected calamity and that there were concerns of a prolonged disruption to the supply chain, the recovery process was well underway.
'At the time of reporting, the US dollar is being exchanged for less than RM3 to US$1 and again we need to be careful of our currency hedging programmes.
'At the moment we are still are able to sell forward at favourable rates of 3.15 to 3.195 for the next few months so the derivative gains are still substantial. We are balancing our risk to such exposure,' it said.
Notion said it expects better performance in the second half of its financial year as major orders were expected during that period.
Revenue for the quarter dipped to RM53.93 million from RM56.71 million in 2010. Earnings per share was 7.01 sen while net assets per share was RM1.62.
The company declared an interim gross dividend of 2 sen per share and an interim tax-exempt dividend of 1 sen per share in respect of the financial year ending Sept 30, 2011.
For the six months ended March 31, Notion's net profit fell to RM24.15 million from RM26.49 million on the back of revenue RM113.91 million.
On its outlook, Notion said the continuing weakening of the US dollar was of concern to exporters and that the decline had not abated.
It said the hard disk drive industry saw a further consolidation of five major makers to now only three major makers with the recent acquisition of Hitachi GST by Western Digital and Samsung by Seagate.
It said this was a sign of a maturing industry but the survival of the component makers would depend on R&B. scalability and ability to achieve sustainable cost savings in manufacture.
With fewer HDD makers, the price environment might improve and be more conducive, it said.
It also said while the Japan earthquake was an unexpected calamity and that there were concerns of a prolonged disruption to the supply chain, the recovery process was well underway.
'At the time of reporting, the US dollar is being exchanged for less than RM3 to US$1 and again we need to be careful of our currency hedging programmes.
'At the moment we are still are able to sell forward at favourable rates of 3.15 to 3.195 for the next few months so the derivative gains are still substantial. We are balancing our risk to such exposure,' it said.
Notion said it expects better performance in the second half of its financial year as major orders were expected during that period.
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