Silverlake Axis reports fiscal 4Q net profit fell on net foreign exchange loss

Malaysia ringgit notesMalaysia ringgit notes

Silverlake Axis reported on Friday that its fiscal fourth quarter net profit fell 5 percent on-year to 36.25 million Malaysian ringgit, or S$12.09 million or US$8.86 million, amid a foreign exchange loss and an increase in the share of a loss of a joint venture.

Other income fell 98 percent on-quarter to 332,684 ringgit, amid a realized and unrealized foreign currency exchange loss of 900,000 ringgit in the quarter, compared with a gain of 15.7 million ringgit in the year-earlier period, mainly from the translation of higher bank balances denominated in foreign currencies, the provider of technology and software services to financial companies said in a filing to SGX after the market close on Friday. The ringgit has also strengthened since the year-earlier quarter, it noted.

The share of loss of a joint venture rose to 13.87 million ringgit, from a loss of 5.31 million ringgit a year earlier, it said. Silverlake Axis also said it had a loss of 3.6 million ringgit under administrative expenses from the sale of 2.5 million Global InfoTech, or GIT, shares in the quarter.

Excluding the loss on the GIT share sale, fourth quarter adjusted net profit would have risen 3 percent on-year to 39.5 million ringgit, it said.

Revenue for the quarter ended 30 June rose 6 percent on-year to 145.48 million ringgit, mainly on higher contributions from maintenance and enhancement services from more contracts obtained in South Asia, Africa and Europe as well as higher progressive revenue on some ongoing contracts in Singapore and Malaysia, it said.

Software licensing revenue rose 65 percent on-year in the quarter to 14.7 million ringgit, mainly on the initial delivery of new higher value contracts in Malaysia and Thailand, Silverlake Axis said. But software project services revenue fell to 9.7 million ringgit in the quarter from 24.7 million ringgit in the year-earlier period on new projects delivered and and higher progressive revenue recognized in the year-ago period, it said.

“With the progressive delivery of existing new contracts, higher revenue recognition from software project services is expected to take place in the subsequent quarters,” Silverlake Axis said.

It proposed a final dividend of 0.3 Singapore cent and a special dividend of 0.5 Singapore cent, bringing the full-year dividend to 3.0 Singapore cents a share. In the year-earlier quarter, the final dividend was 0.3 Singapore cent with a 1.0 Singapore cent special dividend, it said.

For the full fiscal year, Silverlake Axis posted a net profit up 134.09 million ringgit, down 84 percent from a net profit of 863.73 million ringgit a year earlier. Revenue slipped 1 percent on year in the fiscal year to 541.77 million ringgit, it said.

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