SINGAPORE (Feb 14): Silverlake Axis (SAL) has posted earnings of RM264.3 million ($78.7 million) in 2Q, from RM66.6 million a year ago.
This was mainly due to a capital gain of RM223.9 million following the disposal of 18 million shares in an associate, Global InfoTech Co. (GIT).
Silverlake has proposed a tax-exempt second interim dividend of 0.7 cent per ordinary share, to be payable on Mar 7, 2017.
Revenue fell 29% to RM126.7 million in 2Q17, compared to RM179.0 million a year ago.
The decline in revenue due to lower contribution from software licensing, software project services as well as sale of software and hardware products, mainly attributed to the delivery of fewer contracts and reduced capital expenditure by customers.
However, Silverlake says in a SGX filing on Tuesday that recurring revenue segments, which accounted for 88% of total group revenue, continued to grow.
Administrative expenses increased to RM40.5 million in 2Q, from RM26.0 million a year ago, due to higher unrealised foreign currency exchange loss of RM18.1 million.
Share of profit of associates and a joint venture was RM3.0 million in 2Q, from RM0.6 million a year ago, due to higher contribution from a joint venture, Silverlake HGH.
Income tax expense surged to RM28.8 million in 2Q, from RM8.5 million a year ago, mainly due to the accruals of withholding tax on the disposal of shares in an associate.
Cash and cash equivalents stood at RM656.3 million as at Dec 31, 2016.
“The Group continues to focus on the delivery of operational excellence to enable customers to introduce new and improved services amidst the competitive conditions,” says Group Managing Director Dr Raymond Kwong.
Silverlake says it is responding to requests for proposals from existing and potential customers for core IT replacements and digital banking upgrades.
“In addition, the Group continues to evaluate suitable business opportunities for acquisition. The partial monetisation of the investment in GIT will support new investments to expand the market share of SAL,” Kwong adds.
Silverlake Axis closed flat at 60 cents on Tuesday.
