Financial Information

Quarterly Report For The Financial Period Ended 31 March 2017

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Unaudited Interim Financial Report For The Period Ended 31 March 2017 Condensed Consolidated Statement Of Financial Position

ECS ICT Financial Position
 

Unaudited Interim Financial Report For The Period Ended 31 March 2017 Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income

ECS ICT Comprehensive Income
 

Review of performance

Comparison results of current quarter and previous year corresponding quarter

For Q1 FY2017, the Group recorded higher revenue of RM460.1 million, an increase of 5.8% compared with RM434.7 million in the corresponding quarter last year contributed by ICT Distribution Segment. However, Profit Before Tax (PBT) decreased by 6.2% to RM6.6 million compared with the corresponding quarter last year of RM7.0 million mainly due to lower gross profit (GP) margin from ICT Distribution Segment.

The performance of the three business segments for Q1 FY2017 compared with Q1 FY2016 were as follows:

  1. ICT Distribution

    Revenue increased by 11.6% with higher sales from Notebook and smartphones. However with lower GP margin mainly from the product mix, the PBT decreased by 9.9% to RM4.1 million compared with last year's corresponding period of RM4.6 million.

  2. Enterprise Systems

    Revenue decreased by 15.2% with lower sales of server, networking equipment and software. However, with higher GP margin, PBT was maintained at RM1.6 million.

  3. ICT Services

    Revenue decreased by RM554,000. With lower sales, the PBT decreased to RM115,000 compared with last year's corresponding period of RM253,000.

Prospects

The ICT spending of both the consumer and commercial sectors is still cautious following the slowdown last year, although International Data Corporation ("IDC") has forecasted a growth rate of 6.2% year-on-year for the ICT products distributed by the Group.

While sales for Desktop PCs and Notebooks have increased, sales for mobility products namely smartphones and tablets have been flat. Some projects for Enterprise Systems have been delayed to the second half of the year.

Several economists and research houses have reported more positive outlook on the Gross Domestic Product ("GDP") growth rate for 2017 from higher commodity prices and exports.

We therefore expect better consumer spending and ICT expenditure on Enterprise Systems to improve our performance for the remainder of FY 2017.