Mainboard-listed Micro-Mechanics (Holdings), the manufacturer of high precision tools, parts and assemblies for high technology industries, has reported a net profit to $4.8 million for the 12 months ended 30 June 2010 (FY2010), compared to $0.5 million in FY2009.

Group revenue rose 23.6% to $41.0 million, from $33.1 million in FY2009 on the back of improving conditions in the global technology sector.

For the three months ended 30 June 2010 (4Q10), the group registered a record quarterly revenue of $11.8 million which was an increase of 67.5% from $7.0 million in 4Q09, and an improvement of 16.4% quarter-on-quarter from $10.1 million in 3Q10.

The group is proposing a final dividend of 2 cents per share (one-tier tax exempt). This will bring its total dividends in respect of FY2010 to 3 cents per share (one-tier tax-exempt), compared to 2 cents per share (one-tier tax exempt) for FY2009.

Sales of the semiconductor tooling business grew 35.1% to $32.9 million in FY2010 and accounted for a larger 80.3% share of group revenue, compared to 73.5% in FY2009. The group’s two key semiconductor tooling markets of Malaysia and China posted healthy sales growth of 52.1% and 27.1% respectively and together, contributed 37% of group revenue in FY2010. In addition, the semiconductor tooling business recorded its highest-ever revenue of $9.2 million in 4Q10, an increase of 57.4% from S$5.8 million in 4Q09.

The group’s semiconductor tooling business also achieved a higher gross profit margin of 59.2% in FY2010. This more than offset the drag from its Custom Machining and Assembly (CMA) division and enabled the group’s gross profitmargin to expand to 47.5% in FY2010, from 38.8% in FY2009.