MICRO-MECHANICS over the weekend reported a quadrupling in net profit to $722,000 for its second quarter ended Dec 31, from $170,642 a year earlier.

Sales for the supplier of tooling equipment to the semiconductor industry rose 9 per cent to $9.77 million for the quarter, from just under $9 million last year.

Profitability was helped by lower cost of sales through pay and benefits cuts, plus lower distribution costs from headcount reduction in higher cost countries.

For the six-month period, net profit fell to $2.08 million from $2.28 million last year. Earnings per share was 1.5 cent for the six months and 0.52 cent for the quarter on a fully diluted basis.

Cashflow from operating activities for the quarter was $1.85 million, down from $2.17 million a year ago. The company held cash and cash equivalents of $8.14 million as at Dec 31.

Micro-Mechanics noted that 2010 is expected to see recovery and growth for the semiconductor industry on the back of higher consumer demand. It said that inventories rose to $1.8 million as at Dec 31, up from $1.5 million at June 30, due to improving business conditions in the past six months.

The company announced an interim dividend of one cent per share, amounting to $1.4 million.