KUALA LUMPUR (Feb 18): Notion Vtec Bhd swung back to a profit in the first financial quarter ended Dec 31, 2015 (1QFY16), helped by higher revenue and derivative gain.
Net profit grew to RM3.11 million or 1.16 sen per share, compared with a net loss of RM5.25 million or 1.96 sen loss per share in 1QFY15.
The hard disk drive maker saw its revenue grow 4.8% to RM61.05 million in 1QFY16, from RM58.25 million a year ago. It also recorded a derivative gain of RM2.84 million, compared with a loss of RM17.04 million in 1QFY15.
In a filing with Bursa Malaysia today, Notion Vtec said in 1QFY16, it benefited from the write back of provision for mark-to-market losses of US dollar foreign exchange hedging contracts, amounting to about RM8.1 million.
For the remaining financial year 2016 ending Sept 30, Notion Vtec is cautiously optimistic of its prospects as there are concerns for rising labour costs, US dollar exchange rate volatility, and further economic and financial market uncertainties causing consumers to be cautious as well.
On the cash position, the group’s cash and cash equivalent was RM43.7 million, reflecting the year-end payouts for employee benefits.
"Cash preservation remains a top priority, in the light of uncertainties in the market conditions," it said.
The group also highlighted that its capital expenditure of RM2.3 million in 1QFY16 was mostly for replacement type CNCs and equipment, whilst paid for by cash.
“Assuming no fresh loans, the borrowings of RM32 million will be mostly paid up by end of calendar year 2017,” it added.
Notion Vtec shares closed unchanged at 42 sen today, for a market capitalisation of RM112.67 million.
http://www.theedgemarkets.com/my/article/notion-vtec-swings-back-profit-higher-revenue-derivative-gain
