MLabs: Exports to contribute more

  • Business
  • Saturday, 20 Aug 2005

MULTIMEDIA video conferencing systems provider MLABS Systems Bhd expects exports to contribute more significantly to revenue this year. 

Chairman and managing director Professor Madya Dr Sureswaran Ramadass said with more aggressive marketing, revenue from exports was expected to jump from 45% of the total last year, to 50%. 

To achieve this, he said the company intended to participate more aggressively in trade fairs and marketing activities overseas to gain more exposure. 

“We will be launching version five of the Multimedia Conferencing System (MCS) in the United States at the end of this month, followed by the United Arab Emirates, the Philippines and China later this year,” Sureswaran said after the company listing on the Mesdaq market of Bursa Malaysia yesterday. 

MLabs shares made their debut at the day's high of 53.5 sen, 1.5 sen below the initial public offer of 55 sen. The counter closed at the day’s low of 39.5 sen on volume of 17.9 million shares.  

Higher Education Ministry secretary general Datuk Dr Mohd Yahya Nordin hitting the gong to mark MLabs Systems Bhd's listing on the Mesdaq market of Bursa Malaysia. Looking on are directors of MLabs.

MLabs currently exports its expertise and services to the US, Thailand, Vietnam, Japan, Australia, Singapore, India, the Middle East and European countries. 

Sureswaran said the company would also be participating in more trade fairs starting next month in Dubai, in the US at end-September, the Philippines in October, and China in November. 

MLabs is mainly involved in research and development as well as assembly and trading of multimedia video conferencing systems. 

“Unlike conventional video conferencing systems that enable only point-to-point or point-to-multipoint link-ups, MCS offers virtually unlimited multipoint-to-multipoint interactivity for notebook, desktop, boardroom and wireless environments,” Sureswaran said. 

On the local market, he said MLabs would be launching a newer version of MCS later this year.  

“Both overseas and local markets are important to us. We see a big demand coming from the local market,” he said. 

Sureswaran said he expected the local government sector to be the biggest user of MLabs’ multipoint-to-multipoint video conferencing system within two years. 

Last year, this sector contributed 19% of MLabs’ RM5.04mil revenue. 

Chief executive officer Khairil Anuar Aziz said the centralisation of government bodies in Putrajaya would open avenues for the company to strengthen its domestic market presence. 

MLabs’ customer base currently consisted of several large government bodies, including the Penang and Malacca state governments, Meteorological Services Department and Multimedia Development Corp. 

Sirim Bhd, Ranhill Bhd, PLUS Expressway Bhd and Kulim HiTech Park Malaysia are among its clients. 

The company recorded a pre-tax profit of RM1.31mil in the second quarter ended June 30, on the back of RM1.97mil revenue. 

 MLAB :  [Stock Watch]  [News]

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