DMX Technologies has posted a 48.5% rise in net profit after tax to US$1.3 million ($1.8 million) for the three months ended 31 March 2010 (1Q10) from US$0.9 million in 1Q09, driven by higher revenue in the group’s seasonally slowest quarter.

Continuing business expansion in the Digital Media and Infrastructure Enabling divisions powered a 22.9% increase in 1Q10  revenue to US$47.6 million from US$38.7 million in 1Q09 for the Mainboard-listed IT enabler and digital media provider.

Significantly, the Digital Media group grew 51.2% to account for 39.8% or US$19 million of 1Q10 revenue; while the Infrastructure Enabling group expanded 9.4% to contribute 60.2% or US$28.6 million of 1Q10 revenue.

Complementing the group’s top-line performance were its ongoing operating and financial initiatives. As a result, while total operating expense (distribution and administrative) of US$7.2 million for 1Q10 was US$1.5 million higher than that of 1Q09.

The group’s 1Q10 gross margin dipped slightly to 24.6% from 25.6% in 1Q09 as competitive pricing were offered to secure new customers and grow market share.

Geographically, China remained the largest market; delivering 79.8% of 1Q10 revenue from 71.9% in 1Q09.

As at 31 March 2010, DMX’s cash position remained strong at US$137.0 million and net asset value per share was 28.78 US cents.

The group continues to be optimistic about the business opportunities for both its Digital Media and Infrastructure Enabling groups across the markets in which it operates.