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Silverlake Axis, the provider of software to the banking and finance industries, posted a 7% fall in 2Q earnings to RM66.6 million ($22.4 million) from a year ago.
The weaker bottomline was the result of a 61 % decline in the share of profit of associates and a joint venture to RM1.6 million and an increase in income tax expenses to RM17 million.
Revenue for the three months to December rose 44% rise to RM179 million. Sales from maintenance and enhancement services grew 39% to RM92.7 million while sales from software project services more than doubled to RM36.1 million. Software licensing sales fell 13% to RM28.9 million.
Driven by revenue growth, gross profit rose 27% to RM104.4 million. However, gross profit margin was lower at 58% compared with 66% in the previous corresponding period.
The decline was mainly attributed to higher contribution from lower margin business activities, such as software project services and sale of hardware products, as well as the consolidation of the Symmetri Group.
A second interim dividend of 0.75 cent per share has been proposed.
The counter closed 1.75% lower at 56 cents on Thursday.
This article first appeared in The Edge Singapore Market Report.
Didn’t make it to the latest Silverlake Axis AGM? Read more to find out what was revealed there: 12 Things I Learned from Silverlake Axis’s AGM 2015