Bangkok--10 Nov--JayDee Partners
MPT’s performance of Q3’06 rose 14% owing to the seasonally stronger HDD industry demand. After the continuous cost control program, increase in production efficiency as well as new product launchings, the company’s overall performance shall be improved.
Magnecomp Precision Technology reported the increase in sales, shipments and largely reduced loss during the third quarter, which are the reasons affected the Q3’06 net loss decrease 83%. Whereas, the company believes that the expense reduction plan and its concentration of the research and development in order to introduce the new products to the market will contribute to the continuous increase of sales in the near future, making the improvement of its performance to be improved significantly.
Mr. Steven Glenn Campbell, the CEO of Magnecomp Precision Technology Plc had announced the financial performance of Q3’06, MPT’s suspension shipments for Q3’06 rose 17% to 86.6 million units from Q2’06 and up 10% compared to Q3’05. Sales for Q3’06 was Baht 2,433.0 million, a 14% increase from Q2’06 and a slight decrease of 3% compared to Baht 2,496.9 million reported in Q3’05. The Company reported a reduced net loss of Baht 151.7 million or Baht 0.07 per share in Q3’06 compared to a net loss of Baht 822.0 million for Q2’06, and a net profit of Baht 174.6 million or Baht 0.09 per share for Q3’05. This net loss included restructuring and severance charges of Baht 34.3 million related primarily to the MPT’s USA and Thailand facilities.
"We demonstrated improvement through the increase in shipments and reduced operating loss during the third quarter. This is encouraging in light of challenging inventory and pricing conditions that prevailed in the HDD industry during the quarter. The increase in unit shipments, were largely from mature products and was the result of seasonally stronger industry demand and an increase in our market share from the second quarter. We continued to step up the pace of new product introductions and expect to ramp production for 2.5-inch 80 Gbyte/disk and 3.5-inch 160 Gbyte/disk suspension programs this quarter. In addition, our new product pipeline is the largest in the Company's history that should be transitioning into volume production in the coming quarters. These new programs should contribute to record shipment volumes in the coming quarters and contribute to a significantly improved performance for 2007.” Mr. Steven Glenn Campbell said.
For the first nine months of 2006, MPT reported revenue of Baht 7,119.0 million and a net loss of Baht 832.0 million or loss per share of Baht 0.40. This compares with revenue of Baht 6,675.3 million and a net profit of Baht 314.8 million or earnings per share of Baht 0.17 for the nine-month period ended 30 September 2005. The results for the nine-month period under review has already included one-time charges of Baht 615.1 million incurred in Q2’06, related primarily to restructuring and severance charges for the planned exit of its largest manufacturing plant in China.
About MPT
Magnecomp Precision Technology Public Company Limited specializes in designing, developing and manufacturing suspension assemblies for the Hard Disk Drive industry with a number of subsidiaries specializing in precision stamping, chemical etching, additive circuits, and tool and die fabrication, supporting its core business. MPT has manufacturing facilities in both China and Thailand, and a Research and Development Technology Center located in California, close to its major customers in the USA. For more information, please visit the MPT website at www.MagnecompPrecision.com .
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