KUALA LUMPUR: SNS Network Technology Bhd
has received a purchase order worth RM85.52mil for artificial intelligence (AI) super servers from one of the leading e-commerce platforms in Southeast Asia and Taiwan.
The information and communications technology (ICT) system and solutions provider will supply AI super servers to a data centre in Johor Bahru.
These high-performance servers, designed for demanding AI, machine learning, and deep learning tasks, are scheduled for delivery in August 2024.
Managing director Ko Yun Hung said the latest purchase order from the leading e-commerce platform was just the beginning for the company.
“We are on track in achieving our sales target for AI hardware this year. We expect the contribution from this purchase order to be recognised in the third quarter financial results ending Oct 31, 2024,” he added.
Separately, SNS Network registered a lower revenue of RM213.59mil, a 26.3% decline from RM289.84mil a year ago, mainly due to lower revenue contribution from the sale of ICT products.
SNS Network also recorded a profit before taxation of RM5.11mil, down 50.5% from RM10.32mil registered in 1QFY24. This is mainly due to the lower revenue recorded as well as the increase in selling and distribution expenses mainly attributable to the increase in salaries and commissions to third-party online marketplaces.
“Despite the weaker quarter, the board of directors has approved a first interim single-tier dividend of 0.25 sen per share amounting to RM4.03mil for FY25, to be paid out on Aug 28, 2024. This illustrates our confidence in the outlook for this industry going forward,” Ko said.
Barring any unforeseen circumstances, SNS Network is optimistic about the business outlook for the industry on the back of growing demand for AI super servers from several technology firms.
