- Leading Information and Communications Technology (ICT) distributor records RM7.1 million of group net profits in 3Q11
- ICT Distribution segment sales sustained by more notebook brands and demand for tablet PCs
Kuala Lumpur, Malaysia, 2 November 2011 – Malaysia’s leading ICT distributor ECS ICT Berhad (“ECS”, “佳杰科技”; Bloomberg: ECS MK; Reuters: ECSI.KL) recorded lower group revenues of RM317.9 million in the third quarter of the financial year ended 31 December 2011 (“3Q11”) compared to RM329.8 million of the previous year’s corresponding quarter.
Sales in its ICT Distribution segment – the Group’s largest revenue contributor – rose to RM206.3 million in 3Q11, from RM204.9 million previously, riding on the increased number of notebook brands and rising demand for tablet PCs.
The Enterprise Systems segment, meanwhile, recorded RM108.2 million in revenues, compared to RM122.8 million previously; while the sales from the ICT services segment grew to RM3.4 million in 3Q11 from RM2.2 million previously.
“Despite the dampened economic and consumer sentiment overall, our 3Q11 results are respectable. More importantly, we are reaping the benefits of our portfolio expansion strategy undertaken this year, which includes adding more notebook brands and the new tablet PCs to our product range. We believe that this timely move in line with the market trend has enabled us to sustain our performance in this segment.
Sales in the Enterprise Systems segment in 3Q11 were impacted by the economic uncertainty. Nevertheless, we believe that the public and private sectors will maintain necessary ICT investments to enhance competitiveness and productivity in the long run.
As the leading ICT distributor with a proven track record in providing a comprehensive range of ICT products, we are confident that ECS will continue to sustain our performance in the current financial year.”
Mr. Foo Sen Chin (“胡善正”)
Managing Director, ECS ICT Berhad
Group net profits were sustained at RM7.1 million in 3Q11 despite the lower group revenues, largely due to better cost control and lower interest expense.
For the cumulative 9-month period (“9m11”), the Group obtained total group revenues of RM908.9 million in comparison to RM956.0 million in the previous year’s corresponding period, a drop of 4.9% due to lower sales in the ICT Distribution segment. In tandem with the lower group revenues, group net profits amounted to RM19.7 million in 9m11 versus RM20.7 million previously.
Earnings per share for 9m11 totalled at 16.4 sen compared with 17.2 sen previously, based on the enlarged share capital of 120 million shares of par value of RM0.50.
| Financial Summary (Unaudited Consolidated Results) | ||||||
| RM’000 | 3Q11 30.9.11 | 3Q10 30.9.10 | Change (%) | 9m11 30.9.11 | 9m10 30.9.10 | Change (%) |
| Revenue | 317,866 | 329,808 | -3.6 | 908,917 | 956,045 | -4.9 |
| Pre-tax Profit | 9,622 | 9,926 | -3.1 | 26,899 | 28,201 | -4.6 |
| Net profit to shareholders | 7,051 | 7,086 | -0.5 | 19,683 | 20,688 | -4.9 |
| Basic EPS (sen) * | 5.88 | 5.91 | -0.5 | 16.40 | 17.24 | -4.9 |
| *Based on 120 million shares of RM0.50 par value each | ||||||
ABOUT ECS ICT BERHAD
ECS ICT Berhad (ECS), an MSC-status company, and its group of subsidiaries started in 1985 with the establishment of ECS KU Sdn Bhd. Today, the Group is a leading distribution hub for Information & Communications Technology (ICT) products in Malaysia via ECS ASTAR Sdn. Bhd. and ECS PERICOMP Sdn. Bhd.
Listed on the Main Market of Bursa Malaysia Securities Berhad on 15 April 2010, ECS is an associate company of ECS Holdings Limited, a Singapore Exchange main board company which is one of the leading ICT distributors in Asia Pacific, accessing to a network of more than 23,000 channel partners across China, Thailand, Malaysia, Singapore, Indonesia and the Philippines.
ECS distributes a comprehensive range of ICT products comprising notebooks, personal computers, smartphones, tablets, printers, software, network and communication infrastructure, servers, and enterprise software from more than 30 leading principals.
With a nationwide channel network of more than 2,500 resellers comprising retailers, system integrators and corporate dealers, ECS also provides value-added product support and technical services. For more information, please visit www.ecsm.com.my
Issued for and on behalf of ECS ICT BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd.
For media enquiries, please contact:
Ms. Julia Pong
julia@aquilas.com.my
Tel: +603 2711 1391 / +6012-390 9258
Ms. Caren Lwee
carenlwee@ecsm.com.my
Tel: +603 6286 8222 / +6012-626 6855
