V.S. Industry Bhd (VSI), an integrated electronics manufacturing services provider, kicked off its new financial year on a strong note, with group net profits for the first-quarter ended October 31, 2010 (1Q11) more than tripling to RM13 million from RM4.1 million chalked up in the previous corresponding quarter.

In a statement, VSI said group revenue charted an impressive 40 per cent year-on-year growth to RM247.8 million, resulting from increased orders from existing customers and new clients in line with the improved sentiment worldwide.

In light of the excellent performance, the board declared a single-tier interim dividend of 2 sen per share.

'VSI is clearly a beneficiary of the improving outlook for consumer electronics worldwide and our steadily-increasing top and bottom lines are positive indicators of a longer-term impact.

'We believe this trend will continue in FY2011,' said Managing Director Gan Sem Yam in a statement today.

The group also gained traction in winning sales contracts for high-technology sectors such as Light Emitting Diode and new segments such as automotive and healthcare.

'We are optimistic this will effectively broaden our earnings base for the long-term and further improve our sales mix,' said Gan.

The board is optimistic FY2011 would see the group achieving a strong financial performance due to the clear order book visibility ahead.

'The declaration of the interim dividend is reflective of the group's confidence in the current year prospects and the board is considering a quarterly dividend practice to continuously generate shareholder returns,' Gan said. -- Bernama