Micro-Mechanics

Micro-Mechanics: 3QFY14 net profit raced 25.4% y/y to $1.8m on higher gross profit margin of 50.4% (+2.7ppts y/y) due to higher capacity utilisation of 53%, compared to 45% in the previous period, on the disposal of legacy machines at the USA factory and a shift in production to the new 24/7 machining line. The bottom line was partially dragged by lower equipment disposal gain of $8k (compared to $378.7k in 3QFY13), partially mitigated by a $200.6k government grant. Meanwhile, revenue improved 15.4% to $10.6m driven by higher sales, mainly from China, in both semiconductor tooling and Custom Machining & Assembly (CMA) divisions.