SINGAPORE (May 2): Procurri Corporation reported a 75% rise in 1Q19 earnings to $1.75 million from $1 million previously, due to higher revenue and gross profit margin.
Revenue for the quarter grew 8.7% to $53.8 million from $49.5 million previously, with the Lifecycle Services segment booking a 16.8% increase to $18.1 million due to better performance from North and South America as well as European markets.
Revenue contribution from the IT Distribution business segment grew 5.1% to $35.7 million on the back of higher contributions from the Americas.
Overall gross profit margin grew by 1.1 percentage points to 37.3% over the quarter, with gross profit margin from the IT Distribution business segment growing to 27.6% from 24.7% previously due to higher margin deals booked over the period.
This was offset in part, however, by lower gross profit margin in the Lifecycle Services business segment, which fell to 56.5% from 61.6% previously – albeit still in line with Procurri’s expectations, says the group.
With 17.3% higher gross profit of $9.9 million for the quarter, selling expenses grew 41.8% to $4.5 million due to the higher payout of sales commissions.
Cash and cash equivalents grew to $16.7 million from $11.6 million previously as at end-March.
In view of a favourable industry outlook, Procurri believes it is well-poised for growth this financial year, and expects to leverage on its improved capabilities and widened reach to accelerate its momentum and gain an edge in the market.
Shares in the group closed 1.54% higher at 33 cents on Monday.