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.

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