eBworx on course for better year


chingthut@thestar.com.my 

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 Suan Fong

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. 

 EBWORX :  [Stock Watch]  [News]

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Next In Business News

US consumer prices increased in March by most since 2012
Genting prices US$1bil senior unsecured notes
IMF offers rosier view on Asia, warns of Fed fallout on markets
MMHE bags SapuraOMV Jerun contract�
BIMB raises RM795.6mil via private placement
Grab agrees world's biggest SPAC merger, valued at US$40bil
Bank Negara adds two companies to money services business alert list
Top Glove’s billionaire founder buys stake in education firm
FBM KLCI breaks below 1,600-mark
Bitcoin hits record high of US$62,575

Stories You'll Enjoy


Vouchers