SDS the result came on the back of strong performances by its diamond bit and reverse circulation hammer manufacturing divisions, SDS Diamond and Boart and SDS Digger Tools.

"Whilst the half year result is modest, it is an encouraging return to profitability for the company after a long downturn period," the company said in a statement to the ASX.

SDS added all divisions in the group are performing well and reporting greater enquiry levels than the previous reporting period.

In more good news for SDS, the Canning Vale-based company this week announced it had won further $US3.7 million worth of orders from Precision Drilling. SDS will manufacture components needed for well monitoring equipment.

Despite the positive announcement, SDS saw its share price fall 1c to be at 42c.