TFP Solutions in transformation mode

KUALA LUMPUR: TFP Solutions Bhd, which posted a net loss of RM62,000 and lower revenue in the first quarter ended March 31, 2016 (Q1 FY16) is expecting a tough time for the rest of 2016.
“Business for 2015 was flat. Looking at the business scenario, it has not been really rosy for TFP. I would expect 2016 to be the same. During this period, what we are doing is relooking our business model and planning ahead. We are taking these 12 months to do what is necessary for the future,” said its group managing director Quah Teik Jin.
“We are embarking on a few initiatives, one of it is, of course, big data. It is one of the areas we are focusing on. We are also looking into cloud and we are getting our team ready to embark on these initiatives,” he told SunBiz after its AGM yesterday.
For the financial year ended Dec 31, 2015, the company posted a net profit of RM540,000 compared with a net loss of RM15.35 million a year ago. Its share price remained unchanged yesterday, closing at 13.5 sen with 20,000 shares traded.
“The issue in the near future is we expect stiffer competition from the market. Our products are of high value so we expect higher margin but because of competition, we might have to drop our margins. It depends on how the economy goes in 2016,” said executive director Dr Chew Seng Poh.
He declined to reveal the group’s order book, saying only that it will keep the group going for the next three to six months.
“Our key performance indicator (this year) is to transform our business from a traditional one of infrastructure into hybrid cloud computing.
“We are transforming to position ourselves for big data and cloud computing. We will position ourselves as a major hybrid cloud system integrator,” he said.
Chew said it is also looking at ways to expand its security business, in the aspect of cloud computing. The transformation of the business model, which the group started planning for last year, will take two years to complete.
“We anticipate that with this transformation and increasing the productivity of the business in the next one to two years, we should be able to overcome the lacklustre economic climate in this country,” he added.
Chew said 70% to 80% of its business is in the enterprise data centre space, which is being affected by the corporate sector moving away from traditional data centres towards cloud solutions in order to improve their computing power.