Financial Information

Quarterly Report For The Financial Period Ended 30 June 2017

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Unaudited Interim Financial Report For The Period Ended 30 June 2017 Condensed Consolidated Statement Of Financial Position

ECS ICT Financial Position
 

Unaudited Interim Financial Report For The Period Ended 30 June 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 Q2 FY2017, the Group recorded higher revenue of RM447.6 million, an increase of 11.8% compared with RM400.2 million in the corresponding quarter last year contributed by all three segments. However, Profit Before Tax (PBT) decreased by 19.5% to RM6.7 million compared with the corresponding quarter last year of RM8.3 million mainly due to lower gross profit (GP) margin of 4.5% compared with 5.5% last year as a result of lower GP from Enterprise Systems.

The performance of the three business segments for Q2 FY2017 compared with Q2 FY2016 were as follows:

  1. ICT Distribution

    Revenue increased by 12.8% with higher sales mainly from mobility products. However, with lower GP margin mainly from the product mix, the PBT decreased by 5.4% to RM3.7 million compared with last year's corresponding period of RM3.9 million.

  2. Enterprise Systems

    Revenue increased by 8.6% with higher sales from software and storage equipment. However, with lower GP margin, the PBT decreased by 37.9% to RM2.1 million compared with last year's corresponding period of RM3.3 million.

  3. ICT Services

    Revenue increased by RM621,000. However, with lower GP margin, the PBT decreased to RM137,000 compared with last year's corresponding period of RM296,000.

Prospects

For 2017, International Data Corporation has reported that the Desktop PC and Notebook’s consumer segment continued to slow down due to weak consumer spending. Similarly, the enterprise segment posted a significant drop with the subdued spending on ICT projects in the public and commercial sectors.

With the growth of our mobility devices, we shall continue to work closely with our resellers in the telecommunication sector and to expand our mobility channel.

For our Enterprise Systems segment, we are focusing on high value-added products for the networking, cyber-security and hyper-converged projects to improve on our gross profit margin.

In view of the challenging market conditions, we are cautious on the outlook for the second half of FY 2017.