Silverlake posts 93% drop in 3Q earnings to $9.74 mil on significantly lower other income

Silverlake posts 93% drop in 3Q earnings to $9.74 mil on significantly lower other income

By: 
Samantha Chiew
14/05/18, 05:24 pm

SINGAPORE (May 14): Silverlake Axis reported 3Q18 earnings fell 93% to RM29.0 million ($9.74 million) from RM398.4 million in 3Q17.

This brings 9M18 earnings to RM93.4 million ($31.4 million), 89% lower compared to RM813.3 million in 9M17.

Revenue for the quarter came in at RM126.7 million, 2% higher than RM124.4 million a year ago.

This was mainly due to higher contributions from project related revenue segments such as software licensing, software project services and sale of software and hardware products.

As cost of sales decreased by 3% y-o-y to RM55.2 million, 3Q18 gross profit came in at RM71.5 million, 6% higher than RM67.7 million in 3Q17.

During the quarter, the group incurred a loss from finance income of RM0.05 million, compared to gains of RM0.56 million a year ago, due to lesser deposits placement with financial institutions and reversal of interest over accrued on deposits placed, in prior period, in 3Q18

Other income also dropped significantly to RM3.83 million from RM 413.7 million last year, mainly due to a pre-tax accounting gain of RM293.0 million as well as a RM105.6 million gain from a disposal in 3Q17 which were absent in this period.

Administrative expenses increased 23% y-o-y to RM34.4 million, while finance costs increased by 23% y-o-y to RM0.43 million.

Raymond Kwong, managing director of Silverlake says, “We will maintain our marketing efforts and strive to secure additional software projects in 2018.”

Shares in Silverlake closed at 52 cents on Monday.

SGX stock falls 2% before midday break on news of potential injunction

SINGAPORE (May 22): Singapore Exchange (SGX) is facing a potential interim injunction on the India equity derivative products it intends to launch in June this year, but maintains that it nonetheless will continue to list the products as planned. To recap, SGX earlier announced its intention to launch three derivative products in June 2018 – SGX India futures, SGX India options and SGX India bank futures – to succeed the derivatives it used to offer on India’s benchmark Nifty 50. See: SGX shares opens near 7% lower on Nifty futures exit news See: Singapore turns India's Nifty in....
Read More >>

Former Malaysian PM Najib questioned by anti-graft agency

PUTRAJAYA (May 22): Former Malaysian Prime Minister Najib Razak was being questioned Tuesday by anti-corruption police about a graft scandal that could lead to criminal charges against him. He was summoned nearly two weeks after the defeat of his long-ruling coalition in national elections, a loss partly due to public anger over alleged corruption at the 1Malaysia Development Berhad (1MDB), the state investment fund that Najib set up. US investigators say Najib's associates stole and laundered US$4.5 billion ($6 billion) from the fund, some of which landed in Najib's bank account. Swa....
Read More >>

China likely to ease up slightly on financial tightening amid credit slowdown: Oxford Economics

SINGAPORE (May 22): China is likely to shift away from tighter financial policies amid a stronger-than-expected credit slowdown since December last year, even as GDP growth remains a key policy objective, according to research firm Oxford Economics. “The government has put ‘boosting domestic demand’ back on the policy agenda while de-emphasising the task of ‘deleveraging’, fuelling speculation that China is shifting away from tighter financial policies,” says lead economist Tianjie He in a report on Tuesday. However, He highlights that policymakers are not expected to make dr....
Read More >>