JCY back in the black with Q1 earnings of RM30m

KUALA LUMPUR: Hard drive component manufacturer JCY International Bhd has returned to black in its first quarter ended December 31 2013 with a net profit of RM30.3 million.

It had posted a net loss of RM25.7 million in the previous corresponding quarter.

The group also recorded a higher revenue of RM476.8 million versus RM376.8 million previously and attributed this to the higher volume of products sold, better exchange rate, and improved selling prices.

Despite the continuing decline in desktop computers sales, the company expects demand for hard disk drives to remain stable as it has shifted towards cloud infrastructure, gaming consoles and enterprise applications.

On competition from the emerging solid-state drive market, JCY director of finance James Wong said the future of affordable storage lies in hybrid drives, which is a traditional hard disk with a smaller solid-state cache.

The company manufactures four basic components, namely base plates, top cover assembly, actuator pivot flex-circuit assembly and antidiscs.

Being one of the largest global hard disk component manufacturers, JCY benefits from the economies of scale.

JCY has six manufacturing facilities in Malaysia, Thailand and China.