Mainboard-listed Excelpoint Technology says net profit improved 93.5% to US$0.9 million ($1.16 million) during the quarter for the quarter ended 30 September 2010 (3QFY2010) from US$0.5 million in 3Q FY2009.

The group also saw a 41.3% increase in revenue, which rose to US$135.2 million in 3Q FY2010 from US$95.7 million in 3Q FY2009.

Net profit improved 93.5% from US$0.5 million in 3Q FY2009 to US$0.9 million due to strong business activities during the quarter. Taking into consideration the net gain on fair value changes of available‐for‐sale financial assets and other comprehensive income for the quarter net of foreign currency translation, the total comprehensive income for the quarter amounted to US$1.1 million compared to US$0.5 million in the same quarter last financial year.

Corresponding to the higher sales activities, operating expense were also higher, rising from US$6.8 million in 3Q FY2009 to US$8.8 million, representing an increase of 28.3%. Operationally, the group continues to improve its business efficiency as trade debtors turnover narrowed from 49 days to 46 days and inventory turnover improved from 43 days to 36 days.

Working capital requirements were also higher this quarter to support the higher level of business activities. Operating activities resulted in a net cash outflow of US$9.4 million and interest‐bearing loans and borrowings rose from US$20.0 million as at 31 December 2009 to US$39.9 million as at 30 September 2010.

At the close of the quarter, the group has cash and short term deposit of US$20.1 million compared to US$19.6 million as at 31 December 2009.