* Q3 EPS $0.08 vs $0.07 yr ago
* Rev falls 24 pct
(Adds CEO comment, analysts' comments)
By Koustav Samanta
BANGALORE, Nov 12 Neo Material Technologies Inc
NEM.TO, a maker of magnetic material and magnets, posted a 16
percent rise in quarterly profit that beat market estimates,
helped by lower expenses.
Canaccord Adams analyst Yuri Lynk, who currently has a
"buy" rating on the stock, said the company's earnings will
grow in 2010, with acquisitions being a part of its growth
"With no long term debt and a strong cash position, we are
well positioned to take advantage of opportunities that augment
our diversification strategy," Chief Executive Constantine
Karayannopoulos said in a statement.
In the near term, the company would continue to benefit
from the recovery in consumer electronics' demand, but the
fourth quarter is going to be weaker than the third quarter
owing to seasonality factors, Clarus Securities analyst Youssef
Abboud said by phone.
For the third quarter, the Toronto-based company reported a
net income of $9.1 million, or 8 cents a share, compared with
$7.8 million, or 7 cents a share, a year earlier.
The company, which produces rare earth metals such as
neodymium, praseodymium, dysprosium and terbium and rare earth
magnetic powders, said revenue fell 24 percent to $54.1
Analysts on average were expecting earnings of 6 cents a
share, before special items, on revenue of $51.8 million,
according to Thomson Reuters I/B/E/S.
The company said its cost of sales, excluding depreciation
and amortization, fell 39 percent to $30.3 million.
Operating income for the quarter was $11.2 million,
compared to $10.9 million, a year ago. The company reported a
foreign exchange gain of $611,000 during the period.
Shares of the company closed at C$4.10 Thursday on the
Toronto Stock Exchange.
(Reporting by Koustav Samanta in Bangalore; Editing by Maju