SINGAPORE (Feb 4): Silverlake Axis has been able to secure steady cash flows and earnings. For its 1Q2019 ended Sept 30, revenue rose 36% y-o-y to RM166.6 million ($54.8 million) while earnings surged 70% to RM57.9 million. The software licensing and software project services unit, which provides recurring services to the banks, saw revenues double from the year before.

In 2018, Silverlake Axis secured a number of contracts from customers throughout Southeast Asia that are expected to drive performance for the current financial year. The company’s biggest markets are Malaysia, Singapore and Indonesia. The new contracts include a win from AEON Vietnam for Silverlake Axis’ retail automation software, PROFIT. Another eight contracts were awarded by existing customers.

Further ahead, analysts who track Silverlake Axis expect the company to gain from the banks’ fintech push. Silverlake Axis has moved to bolster its product portfolio. Last November, it signed an agreement to acquire an 80% stake in a Latvian provider of software for issuing and verifying digital identity documents and smart cards. Silverlake is paying €17.6 million ($27.16 million) for the stake, of which €3 million would be paid in the following two financial years, subject to hitting growth targets. It also has the option to acquire the remaining 20% of XInfo by December 2021, provided the company has not been publicly listed by then.

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