InnoTek, the precision metal components manufacturer, has announced a net profit after tax of $3.5 million for the January-March 2010 quarter (1Q10), reversing from the loss of $0.8 million in 1Q09, as its Precision metal components business continued to show sustained growth after a recovery that had begun in the second half of FY09.

InnoTek said the reversal was achieved on a 11.9% increase in revenue to $93.6 million in 1Q10 from $83.6 million in 1Q09 as wholly-owned Mansfield Manufacturing Company experienced higher demand of TV components. MSF recorded a net profit of $4.1 million compared to a loss of $3.2 million, over the respective quarters.

Segmentally, revenue from the Precision metal components and Sub-assembly business rose $11.2 million to $84.5 million in 1Q10 from $73.3 million a year earlier but was offset by lower Frame sales recorded by its Dutch subsidiary Exerion Precision Technology Holding B.V.

InnoTek recorded a foreign exchange loss of $0.1 million in 1Q10 compared to a gain of $2.5 million in 1Q’09 (due to the strengthening of the US$ arising from US$ proceeds from the sale of Magnecomp Precision Technology Public Company Limited in 2007.) Since end-2009, the company has converted most of the US$ cash balance to S$, mitigating the impact of a weaker US$.

As at 31 March 2010, the group had cash and cash equivalents of $97.1 million and total borrowings of $38.4 million.

Commenting on the outlook, InnoTek says the recovery in business since the second half of FY09 is expected to continue into the rest of FY10 with higher revenue from TV components products even as the group continues to seek new ways to improve efficiency and lower costs.