SINGAPORE (Feb 9): IPS Securex announced that its 2Q18 earnings dropped 60.6% to $0.53 million, compared to $1.34 million in 2Q17.
Revenue was 51.6% lower at $2.63 million from $5.44 million last year, mainly attributed to a decrease in revenue from the group’s security solutions business. But partially offset by an increase in revenue from the group’s maintenance and leasing business.
Cost of sales also dropped 52% to $1.29 million from $2.68 million a year ago, due to the net decrease in direct material costs incurred, in line with the decrease in revenue.
Hence, gross profit was $1.34 million, 51.2% lower than $2.75 million in 2Q17.
Other income significantly increased to $494,000, compared to $16,000 in the previous year, mainly due to the recovery of outstanding debts previously provided as doubtful debts in the financial year ended June 30 2017.
Finance income declined by 97.4% to $8,700 from $331,000 last year, mainly due to the absence of foreign exchange gain.
Finance costs increased by 476.75 to $68,000 from $12,000 a year ago, mainly due to foreign exchange losses.
Looking ahead, the group will continue its efforts to market its range of security products and integrated security solutions to customers in the Asia Pacific region in order to meet their needs, while engaging in continual cost management.
Shares in IPS Securex closed at 8 cents on Friday.
