SINGAPORE (June 19): Azeus Systems Holdings, the Hong Kong-based IT consultancy services provider has reported a net profit, or earnings of HK$12.7 million (S$2.2 million) for the FY2020 ended March 31, largely unchanged from the previous corresponding year.
For the same period, the company recorded a record 22.6% surge in revenue to HK$181.2 million, compared to the HK$147.8 million in FY19.
The significant increase is driven by 68.1% growth in contributions from the Azeus Products segment. This came about as Azeus’ proprietary products, Azeus Convene and AzeusCare, and their associated services were increasingly adopted and implemented by its customers.
Revenue contribution from the professional IT services segment remains largely unchanged.
Azeus recorded a 22.9% y-o-y decrease in revenue from systems implementation and enhancement, HK$36.2 million, as a result of fewer projects and enhancements secured during the year.
The decrease was offset by higher sales of third-party hardware and software, which surged 953.3% to HK$15.8 million, mainly due to the completion and acceptance of an implementation project during the year.
The maintenance and support services segment recorded an 8.5% y-o-y decrease in revenue to HK$45.3 million. This was mainly due to a decline in the number of maintenance and support services contracts.
Correspondingly, shareholders’ equity rose to HK$100.9 million as at March 31, from the HK$96.8 million last year.
Cash and cash equivalents as at March 31 almost doubled to HK$100.0 million, from last year’s HK$52.7 million.
In its outlook, Azeus says it expects some weakness for its IT services segment which has seen some tender delays due to the political situation in Hong Kong, and the Covid-19 pandemic.
“Our Azeus Products business continues to gain traction among both new and existing customers, providing us with a steadily growing stream of recurring income. Notably, Azeus Convene has expanded to over 100 countries, positioning us as the industry leader for board management software,” says Lee Wan Lik, the managing director of Azeus.
Shares in Azeus closed flat at HK$1.10 (S$0.198) on Friday.
