KUALA LUMPUR (Aug 30): Iris Corp Bhd, whose National Integrated Immigration System (NIISe) contract was terminated recently, saw its net profit surge over four-fold in the first quarter ended June 30, 2023 (1QFY2024) to RM9.71 million versus RM2.07 million a year ago.

Quarterly revenue jumped 89% to RM127.48 million from RM67.42 million previously, driven by higher delivery of electronic identification (eID) cards and electronic passports (e-passports) for overseas projects and domestic sales, Iris said in its bourse filing.

The group noted that RM50.4 million, or 39.5%, of its quarterly revenue, was derived from the NIISe contract, compared with RM22.3 million in the previous corresponding quarter.

Going forward, Iris said the group’s growth is expected to be driven by the delivery and supply of e-passports and eID cards from existing and new customers.

“The group will also leverage on its extensive customer networking to actively pursue new growth opportunities in its core trusted ID and adjacent IT business in both international and domestic markets.

“The board is cautiously optimistic that the group shall perform positively in this financial year arising from higher demand of eID cards and e-passports from overseas projects,” it added.

However, speaking on the terminated NIISe contract, Iris said the termination is expected to have an impact on the group’s performance for the financial year ending March 31, 2024 (FY2024), but noted the extent cannot be reliably ascertained at the moment.

“Iris Information Technology Systems Sdn Bhd (former NIISe contractor and Iris’ wholly-owned subsidiary) is seeking legal advice from its solicitors in relation to the notice of termination and shall take necessary actions to protect its interest and exercise its legal rights in relation to the NIISe contract,” it also noted.

Shares in Iris rose 0.5 sen to 7.5 sen, giving it a market capitalisation of RM244.72 million.