Legend net profit doubles

Strong domestic demand for memory products

Semiconductor firm Legend (ASX:LGD) has recorded a 45 per cent growth in net profit after tax to $6.6 million for the year to 30 June 2010.

The company also recorded an EBITDA of $13.4 million, up 28 per cent year on year. Revenues declined four per cent to $86.8 million.

The company’s memory modules and semiconductors division, which markets under the Hendon Semiconductors and Legend Performance Technology brands, reported EBITDA growth of 11 percent to $6.7 million.

The division’s result, according to the company, was based on significant over-forecast demand from key domestic clients despite GFC-related under performance in export markets and reduced sales of generic memory products.

Its electrical, data and communications division, which markets under the CABAC and CABAC Power brands, reported EBITDA growth of 47 per cent to 6.8 million.

The division’s result was affected by falls in new housing and commercial building starts resulting in contraction of electrical wholesale markets.

As reported by Computerworld Australia Legend in February said it had recorded a 19.5 per cent year on year increase in net profit after tax to $2.2 million, despite a 9.4 per cent decrease in revenues to $43.5m for the half year to 31 December 2009.

EBITDA for the company, which is best known for its memory modules, improved 3 per cent to $6.75 million, up from $6.55 million for the year on year half.

In an ASX statement, the company said the revenue result was due to reduced demand from industrial and commercial building markets in Australia and the global financial crisis which adversely impacted the company’s CABAC business.

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