PETALING JAYA: Financial solutions specialist eBworx Bhd, which is on course to meeting its target for the financial year ending Dec 31, expects revenue visibility to be high next year.
Group chief executive officer Tan Suan Fong said order book in hand and projects that the company was bidding for would boost revenue.
“Banks are spending heavily on information technology due to the Basel II requirement. As central banks in South-East Asia are slowly opening up the market, local banks feel the pressure from competition.
“So, in terms of innovation and improving their service channels, the banks have a lot of electronic banking projects coming up besides (meeting) the Basel II requirement,” he told StarBiz.
Tan said the Government’s push on Islamic banking would also drive demand for software, licensing and services.
“These trends will continue to drive spending for at least another 24 months. The coming two years will be exciting,” he added.
For the cumulative nine months ended Sept 30, eBworx’s net profit surged 55.7% to RM8.92mil from RM5.73mil in the previous corresponding period.
Revenue for the period under review grew 31% to RM32mil from RM24.43mil before.
For the third quarter ended Sept 30, net profit doubled to RM2.88mil year-on-year, while revenue rose 21.2% to RM10.12mil.
In a statement issued on Nov 1, Tan said the improvements for the third quarter were mainly due to the group’s increased revenues and improved operational efficiency. eBworx also managed to further strengthen its recurring income stream.
“Our recurring income contributes slightly below 50% (to revenue for the current financial year). These are mainly from maintenance and software enhancements services,” he said.
Tan said it had a “healthy order book to last through 2008” although he declined to disclose the amount.
“The bulk of revenue for 2008 is secured. Our target issecuring RM10mil to RM15mil of new contracts every quarter,” he added.