SINGAPORE (Nov 13): DeClout, the global builder of next-gen ICT companies, saw 3Q net loss narrow to $3.0 million from a net loss of $3.5 million last year.
DeClout reported revenue of $73.4 million for 3Q17, a 9.6% decrease from $81.2 million in 3Q16. This was due mainly to the absence of $13.1 million revenue contribution from Acclivis, which was divested in late 2016.
Excluding the revenue contribution from Acclivis in 3Q16, 3Q17’s revenue would have risen by 7.9% y-o-y.
DeClout says the IT Infra segment remains a key segment of the group’s operations, accounting for 94% of the group’s total revenue in 3Q17. Revenue from the IT Infra segment rose 7.4% to $69.0 million in 3Q17 from $64.2 million in 3Q16. Excluding the revenue contribution from Acclivis, which stood at $13.1 million in 3Q16, revenue for the IT Infra segment would have grown by 35.1% in 3Q17.
Revenue from the VDC (Vertical Domain Clouds) segment declined 74.0% to $4.4 million in 3Q17 from $17.0 million in 3Q16 mainly from the e-commerce business unit, Corous360. However, revenue from vCargo Cloud (VCC) rose by 120.4% to $0.8 million in 3Q17 compared to $0.4 million in 3Q16.
In line with the lower revenue for 3Q17, the group’s gross profit declined by 6.9% to $18.8 million for 3Q17, compared to $20.2 million for 3Q16.
Excluding the gross profit contribution of $4.2 million from Acclivis in 3Q16, the group’s gross profit would have grown by 27.4% in 3Q17.
Gross profit margin increased by 0.7 percentage point to 25.6% due mainly to the favourable sales mix comprising a larger proportion from the IT Infrastructure Sales and Services segment.
In its outlook, DeClout says the group’s strategy remains unchanged, focusing on the IT Infra segment as a source of stable and strong income generator.
“Barring any unforeseen circumstances, the group expects the IT Infra segment to improve in 2018 with the growth of Procurri and Beaqon to fill up the contributions gap left by the sale of Acclivis,” adds DeClout.
Shares in DeClout closed at 9.5 cents.
