Scintronix Corporation says group turnover decreased by 17% to $14.8 million during the 1st half year ended Dec 31 2009 (1HFY2009) compared to $17.8 million in the corresponding period of the previous year (1HFY2008). Net profit attributable to shareholders was $8,000 compared to a net loss of $1 million a year ago.

Significant reduction of orders from customers in Malaysia and China Dongguan resulted in the decreased in group turnover, says Scintronix.

Despite lower sales, Scintronix says all its major customers remain financially sound and payments continued to be prompt and on time.

Cost of goods sold had decreased from 90% to 87% during the period due to overall control of materials usage at the factory.

Group operating expenses comprising distribution and selling costs, administration expenses and other operating expenses amounted to $1.8 million during the period compared to $2.8 million in the previous year. The improvement of 36% is mainly attributable to better control of labour cost and other admistration expenses.

Despite the lower turnover, the group’s gross profit remained at about $1.99 million which is about 10% higher than previous year.

Group profit before tax recorded $0.011 million during the period as compared to a loss before tax of $1 million in the previous year. This is mainly due to a better control of the operating expenses during the year and slight improvement in the gross profit for the period.

Inventories increased by $1.1 million mainly due to purchase of materials required to meet the customer requirement after the calendar year ended Dec 31 2009. Some of the products required long lead time and Scintronix has to stock up for confirmed orders.

Trade debtors increased by $3.7 million due to increase in sales during the month before the calendar year ended in December 2009. There are also delayed in payment from overseas customer during the festive period in December 2009.

Bank loan decreased by $0.7 million from $2.7 million in the previous year to $2 million as at year ended Dec 31 2009.