ECS ICT net profit declines 20% in Q3

PETALING JAYA: ECS ICT Bhd saw its net profit in the third quarter (Q3) ended Sept 30, 2017 fall 20.5% to RM4.89 million, from RM6.15 million in the previous corresponding quarter, mainly due to lower gross profit margin and higher administrative expenses.
Revenue for the quarter increased 2.1% to RM446.16 million, compared with RM436.9 million in the same period last year on the back of higher revenue in its ICT distribution segment.
Nonetheless, the increase in revenue from ICT distribution segment was offset by lower revenue from its enterprise systems and ICT services segments, it told the stock exchange today.
For the nine months period, the group’s net profit decreased 16.2% to RM14.72 million, against RM17.56 million a year ago, while revenue grew 6.4% to RM1.35 billion, from RM1.27 billion previously.
On its prospects, the group said it expects the ICT market to remain sluggish in the second half of this year to-date, due to weak consumer sentiments and cautious spending of the private and public sectors for enterprise systems.
However despite the current challenging market conditions, it said the business outlook is better for Q4 2017 compared to the first nine months of this year, due to the higher consumer spending during the festive season.
“In addition, the year-end budget spending by the public sector is expected to improve demand for enterprise systems. We expect the group’s performance in Q4 2017 to be better than Q3 2017”, it said.
The board has declared a single tier interim dividend of 2.5 sen per ordinary share each for the financial year ending Dec 31, 2017. The dividend will be paid on Dec 14, 2017.
The stock closed unchanged at RM1.37 today with some 32,000 shares done.