Silverlake Axis reports fiscal 4Q net profit jumped 86 percent

Malaysia 10-ringgit noteMalaysia 10-ringgit note

Silverlake Axis reported Friday its fiscal fourth quarter net profit jumped 86 percent on-year to 67.45 million ringgit (S$22.27 million or US$16.03 million) as the project-related segment contributed “significantly” to revenue.

Revenue for the quarter ended 30 June rose 30 percent on-year to 189.33 million ringgit, the provider of software to financial institutions said in a filing to SGX.

Project-related revenue was 69.2 million ringgit in the quarter, up 183 percent on-year, while software licensing revenue jumped 132 percent on-year to 34.0 million ringgit, Silverlake Axis said. Revenue from software project services climbed to 35.2 million ringgit in the quarter, up more than three times from 9.7 million ringgit in the year-ago period, the filing said.

“The increases were mainly due to higher revenues recorded from the progressive delivery of two Malaysian core banking projects, new retail automation contracts secured in Hong Kong and Malaysia, and the deployment of channel innovations for two financial institutions in Malaysia in the fourth quarter,” the company said. “SIA X Infotech Group (XIT Group), a newly acquired subsidiary in January 2019, also contributed to the overall increase in project related revenue.”

The gross profit margin rose to 64 percent in the fourth quarter from 57 percent in the year-ago period, mainly on improved margin from software licensing, software project services and the maintenance and enhancement segments, the company said.

Finance income rose 116 percent on-year to 1.16 million ringgit on higher deposits placed with financial institutions, while finance costs climbed to 7.15 million ringgit from 52,600 ringgit in the year-ago quarter, the filing said.

Other income surged to 24.73 million ringgit in the quarter from 332,684 ringgit in the year-ago period on a 14.8 million ringgit gain from a fair value adjustment and a 9.4 million ringgit gain from a derivative based on the remaining 20 percent stake in XIT Group the company doesn’t already own, Silverlake Axis said.

The share of loss of a joint venture dropped to 375,048 ringgit from 13.87 million ringgit in the year-ago quarter, mainly on a year-ago impairment loss, the company said.

Silverlake Axis proposed a final dividend of 0.7 Singapore cent a share, compared with 0.8 Singapore cent in the year-ago period.

For the full fiscal year, Silverlake Axis reported net profit climbed 83 percent on-year to 245.58 million ringgit on revenue of 680.81 million ringgit, up 26 percent on-year.


The company was cautiously optimistic in its outlook.

“The ongoing trade dispute between the United States and China has resulted in slower economic growth in many countries in Asia. If this trade dispute is prolonged, the general uncertainties could deteriorate into a more cautious business environment,” Andrew Tan Teik Wei, group managing director, said in the statement.

But the company also noted it was continuing to see a healthy flow of new business queries and requests for proposals from existing and potential customers.

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