SINGAPORE (Aug 1): Secura Group reversed into the red in the 2Q ended June as the security solutions provider reported a loss of $0.23 million compared to a profit of $0.59 million a year ago.
As forewarned by the group earlier, the loss was primarily due to price pressure from system integration projects, increase in liquidated damages for the security guarding segment due to shortage of manpower as well as the absence of one-off sales from the high margin digital forensic segment in 2Q18.
See: Secura guides for 2Q loss; share price hovers near all-time low
Revenue fell 14.2% to $9.7 million from $11.3 million a year ago as sales from the digital forensic segment shrank 96.4% fall due to absence of one-off sales worth $1.3 million from an overseas contract.
Segmentally, revenue from the security printing, security guarding and cyber security segments fell 7.0%, 3.0% and 66.5% respectively.
But these were partially offset by increase in revenue from sales of system integration projects and provision of security consultancy services.
Cost of sales decreased 7.7% to $8.51 million.
Operating income increased 10.5% to $0.39 million due to higher interest income from placement of fixed deposits and writeback of impairment loss on financial assets.
As at June 30, cash and cash equivalents stood at $14.1 million.
In its outlook statement, Secura says it has received more orders to deliver digital forensic products in 3Q19 despite the volatile economy. The company also expects an increase in demand for system integration jobs over the next 12 months.
Shares in Secura closed flat at 6 cents on Thursday.
