Memtech International Ltd  announced that Nantong Memtech TSP Solution Co Ltd, a wholly-owned subsidiary of the Company, has increased its paid-up capital by US$4.5 million. The capital increase, which was contributed using internal funds, is to meet Nantong Memtech TSP’s working capital requirements.
 

MEMTECH POSTS RECORD FIRST QUARTER SALES OF US$30.8 MILLION

- Q1 2010 revenue jumps 52.8% to US$30.8 million

- Gross profit margin improves from 13.8% in Q1 2009 to 18.1% in Q1 2010

- Achieves with profit attributable to shareholders of US$1.0 million

- Healthy cash position of US$40.3 million as at March 31, 2010

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Singapore, April 28, 2010

or the “Group”) (“

provider for the mobile phone, IT equipment and automotive industries, today

reported a record first quarter revenue of US$30.8 million for the three months ended

March 31, 2010 (“Q1 2010”), up 52.8% compared to US$20.2 million for the three

months ended March 31, 2009 (“Q1 2009”).

On the back of higher sales and improved operational efficiencies, the Group

recorded a net profit attributable to shareholders of US$1.0 million in Q1 2010

compared to a net loss of US$0.7 million in Q1 2009.

Executive Chairman of Memtech International Ltd., Mr Chuang Wen Fu (“

said, "Memtech is off to a strong start in 2010, turning in our best first quarter sales in

the Group’s history. Our strong revenue performance was a result of growing orders

from existing and new customers, driven by the upturn in the keypad business. The

Group’s bottomline was further boosted by enhanced operational efficiencies and a

leaner cost structure."Expects healthy growth in keypad business in the year ahead– Mainboard-listed Memtech International Ltd. (“Memtech”万德国际有限公司”), a leading integrated component solutions庄文甫”)

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Led by stronger sales and improvements in manufacturing efficiencies, the Group’s

gross profit doubled to US$5.6 million in Q1 2010. Gross profit margin also improved

from 13.8% in Q1 2009 to 18.1% in Q1 2010.

During the quarter under review, sales and marketing expenses increased by 40.9%

from US$1.1 million to US$1.6 million. The higher level of sales and marketing

expenses was a result of increases in salaries and related expenses, together with

higher packaging cost due to increased sales.

General and administration expenses rose 38.8% to US$2.6 million in Q1 2010. This

was mainly due to increased salaries and related expenses and a provision for

doubtful debts of US$0.2 million in Q1 2010 compared to a reversal of US$0.1

million in the previous corresponding period.

As at March 31, 2010, the Group continued to maintain a strong financial position,

with cash and cash equivalents of US$40.3 million or approximately 5.6 US cents

per share.

Outlook

Based on the macroeconomic outlook and orders from existing and new customers,

the Group expects a healthy growth in its keypad business in 2010.

Commented Mr Chuang, “The global economy is well on the road to recovery. This

has translated to growing demand from existing and new customers. Our keypad

products have recently secured approval from Samsung and several key fastgrowing

Chinese handset manufacturers. Coupled with improved operational

efficiency and a stronger team following our organizational restructuring last year, we

are well-positioned to tap on the market opportunities that lie ahead.”

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While the Group expects to continue to see intense competition and price pressure

in its plastics business, Memtech will step up its efforts to improve its plastics

business. On the other hand, the Group is positive of the prospects of its small, but

growing touch screen panel business.

“Our touch screen panel products are well received by its customers despite our

88.7% TO US$2.4 MILLION

- Posts revenue of US$104.6 million for 2009

-

profit attributable to shareholders of US$1.8 million4Q09 revenue increases 30.1% to US$32.6 million; Returns to the black with

- Cash and cash equivalents of US$38.4 million as at December 31, 2009

-

Singapore, February 25, 2010

(“Memtech” or the “Group”) (“

solutions provider for the mobile phone, IT equipment and automotive industries,

today announced its results for the financial year ended December 31, 2009 (“2009”).

The Group reported an 88.7% increase in net profit attributable to shareholders to

US$2.4 million on the back of a 4.3% decline in revenue to US$104.6 million.

Commented Mr Chuang Wen Fu (“

the recovery of the economy, demand from customers improved progressively in the

third and fourth quarters of 2009. With better operational efficiencies implemented

since the beginning of 2009, the Group managed to improve our results to cover the

losses incurred in the first half of the year.

Despite the high volatility in revenue in 2009, the Group managed to achieve a gross

profit margin of 15.6% compared to 15.1% in 2008.”Proposes cash dividend of 0.75 Singapore cents per ordinary share– Mainboard-listed Memtech International Ltd.万德国际有限公司”), a leading integrated component庄文甫”), Executive Chairman of Memtech, “Given

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For the three months ended December 31, 2009 (“4Q09”), the Group’s revenue rose

30.1% to US$32.6 million. Led by stronger sales, the Group’s gross profit margin

jumped from 2.9% for the three months ended December 31, 2008 (“4Q08”) to

15.6%.

With higher sales and better operational efficiencies, the Group recorded a net profit

attributable to shareholders of US$1.8 million in 4Q09 compared to a loss of US$2.1

million in 4Q08.

During the year under review, the Group continued to maintain a sound balance

sheet through the difficult operating environment. As at December 31, 2009, the

Group has cash and cash equivalents of US$38.4 million. This represents 35.0% of

the Group’s net tangible assets or approximately 5.4 US cents per share.

As a gesture of appreciation to the Group’s shareholders, the Board is proposing a

first and final dividend of 0.75 Singapore cents per share.

Outlook

Based on the current economic recovery, the Group expects 2010 to be a better year

as compared to 2009.

Mr Chuang said, “In 2009, we worked on enhancing our operational efficiency and

cost structure. In 2010, we will focus our resources to increase our market share. We

will also channel resources to improve the performance of our plastic and touch

screen panel businesses.

Against the backdrop of higher inflation, increasing labour costs in China and further

depreciation of the US Dollar, 2010 remains a challenging year for the Group.

Nevertheless, with an experienced management team and a healthy cash flow, the