Mainboard-listed Darco Water Technologies, the provider of integrated engineering and knowledge-based water treatment solutions, announced a revenue of $26.4 million in the first six months ended 31 June 2010 (1H FY2010), a year-on-year (y-o-y) decrease of 21.0% from $33.3 million in the first six months ended 31 June 2009 (1H FY2009).

Despite the drop in revenue, the group improved its gross profit and margins during the period and turned in a positive net profit after tax of $0.7 million in 1H FY2010.

Darco Water says the drop in revenue was largely attributable to lower sales from Taiwan, the group’s traditionally largest contributing market, as a result of a major management restructuring exercise.

Taiwan contributed $6.7 million in revenue in 1H FY2010 as compared to $8.7 million in 1H FY2009, signifying 25.4% of total revenue. In addition, China also contributed $5.8 million in revenue or 22.1% in 1H FY2010, a drop from $11.6 million in 1H FY2009 chiefly due to the reflection of the FRS INT 112 accounting standard. The rest of the markets, such as Singapore, Malaysia, as well as Philippines, posted healthy growths in revenue contribution.

Indeed, Malaysia outperformed Taiwan and became the largest contributing market, contributing$10.8 million revenue or 40.9% of total revenue in 1H FY2010, up from $7.1 million in 1H FY2009.

The marked growth was attributable to higher orders received in tandem with the recovery of the industrial sectors, especially coming from the electronic, semi-conductor and solar power manufacturing sectors. These sectors are important businesses to the group.

In terms of revenue by business activities, Engineered Environmental Systems segment decreased to $15.3 million in 1H FY2010 from $24.8 million in 1H FY2009, while the group’s Water Management Services segment increased to $10.8 million in 1H FY2010 from $8.3 million in 1H FY2009.

The decrease in revenue from Engineered Environmental Systems was largely attributable to lower sales from Taiwan. Meanwhile, Water Management services segment saw growth as a result of higher orders and water management contracts awarded by the group’s industrial customers. The remaining $0.3 million came from Trading activities.