Silverlake Axis' Q3 profit after tax up 51%, secures RM60m in contracts

MAINBOARD-LISTED Silverlake Axis' profit after tax rose 51 per cent to RM38.7 million (S$12.56 million) for the third quarter ended March 31.

This was despite a 7 per cent fall in revenue to RM140.9 million for the financial services enterprise tech company.

Revenue from software project services fell 34 per cent to RM12 million, and that from software licensing fell 40 per cent to RM5.9 million.

Revenue from maintenance and enhancement services, the largest segment, inched up 1 per cent to RM113 million.

Earnings per share came in at 1.5 sen, up from 0.97 sen the year before.

Gross profit rose 2 per cent to RM84.8 million, while other income nearly tripled to RM6.3 million from RM2.3 million the year before.

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For the nine months ended March 31, profit after tax was down 15 per cent to RM106.2 million. This came on the back of an 11 per cent fall in revenue to RM449.3 million, dragged down by the software licensing, software and hardware products, and software projects services segments.

Silverlake said on Tuesday that it has secured contracts with an aggregate value of about RM60 million. The contracts, which are with 26 existing customers, are primarily for enhancements to existing core banking systems and to enhance customers' digital experience. The services are expected to be completed 12 to 18 months from the signing of the contracts.

The counter closed flat at S$0.24 on Tuesday.