Silverlake Axis' net profit spikes 3% to $25.98m in Q4
On back of robust software licensing, maintenance services.
Digital service provider Silverlake Axis Ltd. (SAL) has posted healthy end-year results, with net profit growing a modest 3% to $25.98 million in Q4 and registering strong revenue gains brought about its higher software licensing and maintenance and enhancement services.
Strong contributions from its segments led to a revenue rise of 32% to $56.2 million for the quarter ending in June.
SAL's software licensing businesses posted a revenue growth of 41% while its maintenance and enhancement segment saw 45% revenue improvement. Only its software project services reflected a backlash growth.
"Revenue from software project services was lower due to the completion of higher value contract earlier in the financial year and lower progressive revenue recognition from new and ongoing implementation projects during the quarter," the group said in a statement.
Meanwhile, the strengthening of Japanese Yen and appreciation of Singapore Dollars against Ringgit Malaysia during the quarter also boosted SAL's growth contributing 11% to the higher topline.
However, other the group's other income suffered declines compared to previous period.
According to the group, this included an accounting gain of $6.5 million on dilution of interest in an associate in China, Global InfoTech Co. Ltd. and the fair value adjustment for the acquisition of Merimen.
"The Group also incurred higher operating expenses with the consolidation of Symmetri Group as well as realised foreign currency exchange loss of RM8.8 million ($2.96 million)," SAL noted.
Looking ahead, SAL's Managing Director Raymond Kwong said the group will continue to deliver fintech innovations to help customers protect and grow their marketshare.
"Regardless of prevailing business sentiments, SAL remains committed to the timely delivery of well-executed projects. We will continue to support the growth of our customers through enhancement of their core IT systems for greater efficiency as well as to deliver new capabilities to enable them to compete effectively in the competitive marketplace," he said.
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