SINGAPORE (Mar 15): Datapulse Technology, which was ordered by the Singapore Exchange to appoint independent advisors by March 9 to conduct a review of its internal controls and corporate governance practices, has swung back into the black with 2Q18 earnings of $38.1 million on one-off gain from sale of its leasehold property at Tai Seng Drive.
See: SGX directs Datapulse to review corporate governance practices
Revenue for the quarter grew 58% to $4.5 million from $2.9 million in 2Q17, mainly due to revenue from a one-off special project with one of the group’s customers as well as from Datapulse’s newly-acquired subsidiary, Wayco Manufacturing.
Total operating expenses however more than doubled to $10.8 million from $3.7 million in 2Q17 on higher cost of raw materials, due to raw materials used for a one-off special project and those attributed to Wayco, in line with the higher revenue.
The group also registered higher income of $44.8 million over the quarter compared to $0.1 million a year ago after recognising a $44.6 million gain from its leasehold property at 15A Tai Seng Drive, which was completed end-Jan 2018.
Datapulse highlights that excluding the gain on sale of its leasehold property, it would have recognised a loss before tax of $6 million.
For the half year ended Jan, the group registered 1H18 earnings of $36.8 million, up nearly sevenfold from $5.5 million a year ago.
In its outlook, Datapulse says its business of manufacturing of media storage products is currently dormant now that it has sold its Tai Seng Property.
As the group still retains part of its manufacturing equipment, the group highlights the possibility of re-starting manufacturing activities provided that it can find suitable premises to relocate to – although it remains unlikely for the company to engage in this business as its sold or primary core business, due to challenging industry conditions and limited prospects for profitability or growth in this field.
Regarding its proposed diversification into haircare and cosmetics products; change in board of directors; and a special one-tier tax-exempt dividend it intends to issue, the group says it plans to hold an extraordinary general meeting (EGM) on 20 April to consider these matters, with further details of the meeting to be announced in due course.
See: Datapulse Technology to diversify into haircare and cosmetics manufacturing
See: Datapulse to issue special 1 cent dividend following sale of Tai Seng property
Shares in Datapulse closed 1 cent higher at 35 cents on Wednesday.
