Financial Information

Quarterly Report For The Financial Period Ended 31 March 2018

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Unaudited Interim Financial Report For The Period Ended 31 March 2018 Condensed Consolidated Statement Of Financial Position

ECS ICT Financial Position
 

Unaudited Interim Financial Report For The Period Ended 31 March 2018 Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income

ECS ICT Comprehensive Income
 

Review of performance

ECS ICT Financial Position
 

Q1 2018 compared with Q1 2017

For Q1 FY2018, the Group recorded lower revenue of RM391.8 million, a decrease of 14.2% compared with RM456.8 million last year due to lower revenue from ICT Distribution segment. However, with higher gross profit margin of 5.1% compared with 4.4% last year contributed mainly from Enterprise Systems, the gross profit (GP) was maintained at RM19.9 million.

For Q1 FY2018, the distribution expenses decreased by 2.5% to RM8.9 million from RM9.2 million last year due to a lower revenue. While the administrative expenses increased by 3.2% mainly from warehouse expenses.

Overall, the GP and operating expenses were maintained at same level as per last year. However, due to foreign exchange loss of RM367,000 compared with gain of RM338,000 last year (Note 17), the profit before tax (PBT) decreased by 10.7% to RM5.8 million compared with RM6.6 million last year.

Quarterly Segmental Result

The performance of the three business segments for Q1 FY2018 compared with Q1 FY2017 were as follows:

  1. ICT Distribution

    Revenue decreased by 24.9% with lower sales mainly from Notebook and mobility products namely tablets and smartphones. With lower sales and GP, the PBT decreased by 40.6% to RM2.5 million compared with RM4.1 million last year.

  2. Enterprise Systems

    Revenue increased by 36.8% with higher sales from servers and software. With higher sales and better GP margin, the PBT increased by 64.8% to RM2.7 million compared with RM1.6 million last year.

  3. ICT Services

    Revenue increased by RM836,000. With higher revenue and GP, the PBT increased to RM198,000 compared with RM115,000 last year.

Prospects

The uncertainties of the 14th General Election on 9 May 2018 have impacted the overall market sentiments on ICT spending. The sales of notebooks, tablets and smartphones under the ICT distribution segment have slowed down year-to-date this year although there are some increases from software, networking, server and storage products under the Enterprise segment.

The outlook for the remainder of FY 2018 remains to be challenging but we expect improvements for the second half of this year with better consumer spending as well as corporate spending from both the private and public sectors.