CFA Society Singapore
SINGAPORE (Nov 9): Procurri Corporation, the provider of lifecycle services and data centre equipment, reported 3Q18 earnings ended Sept of $1.42 million, up significantly from $14,000 in 3Q17.
For the 9M18 ending Sept, earnings came in at $3.7 million versus a loss of $1.49 million in 9M17.
Revenue for the quarter was 8% higher at $55.4 million from $51.3 million a year ago.
This was mainly due to a 45.3% increase in the group’s lifecycle services revenue to $16.3 million, led by better performance in North and South America and Europe, Middle East and Africa.
Revenue from IT Distribution segment fell 2.4% to $39.1 million, mainly due to lower contribution from Asia Pacific and Europe, Middle East and Africa.
As cost of sales increased by 1.1% y-o-y to $35.5 million, 3Q18 gross profit came in at $19.8 million, 23.3% higher than $16.1 million last year.
Selling expenses increased by 35.4% y-o-y to $3.42 million, while income tax expenses saw a 180% y-o-y jump to $1.26 million.
As at end Sept, the group’s cash and cash equivalents stood at $13.6 million.
Sean Murphy, chairman and global CEO of Procurri, says, “While the operating environment remains competitive, the key industry trends include a growing acceptance among IT users of the secondary IT equipment market with more original equipment manufacturers endorsing the sale of certified refurbished or excess equipment, as well as a shift towards open-server architecture with companies and data centre operators increasingly preferring to work with vendor-agnostic service providers, such as Procurri.”
As at 12 noon, shares in Procurri are trading 2 cents higher at 29 cents.