Map Technology Holdings, the component manufacturer for the hard disc drive and biomedical industries, is pleased to announce its return to profitability with a net profit of US$3 million ($4.1 million) for the first quarter ended 31 March 2010 (1Q2010), thanks to the ongoing recovery of the global HDD market.

Revenue for the quarter grew 33% from US$31.7 million to US$42.2 million in 1Q2010, as the group saw sales improve across all its business divisions, except for the die-cut components division which fell US$0.15 million to US$1.1 million.

Although the Electronics Manufacturing Services (EMS) division remains the largest revenue contributor for the group at 57% of total revenue, the group’s precision stamping division doubled its sale to US$12.1 million in 1Q from US$5.4 million in 1Q.

Due to a more favourable sales mix of higher margin precision stamping components and lower production cost per unit from greater economies of scale, the group’s gross profit margins improved from 9.3% in 1Q to 11.9% in 1Q.

Following the raising of $14.6 million from a rights issue last year, the group says it will be able to seize opportunities for mergers and acquisition. MAP also boosted its net cash position from US$17.4 million as at 31 December 2009 to US$19.7 million as at 31 March 2010, mainly due to cashflow generated from operations. The group’s gross gearing improved from 27.4% to 18.1% in 1Q2010.

Market research firm Trendfocus forecasts that HDD shipments are set to reach a new high of 665 million units in 2010. Barring any unforeseen circumstances, the group is cautiously optimistic that its results will continue to be favourable.