KUALA LUMPUR (May 7): AwanBiru Technology Bhd (Awantec) reported a net profit of RM2.14 million for its third quarter ended March 31, 2024 (3QFY2024), a significant turnaround from the net loss of RM1.99 million it incurred a year ago, as its software and services segment secured major contracts with higher revenue.
It recorded an earnings per share of 0.27 sen for the quarter, compared to a loss per share of 0.25 sen in 3QFY2023, the software service provider's bourse filing showed. Revenue jumped more than sixfold to RM55.77 million from RM8.51 million.
For its first nine months of FY2024, the group notched a net profit of RM3.33 million compared to a net loss of RM6.3 million in 9MFY2023. This improvement was similarly underpinned by higher profits from its software and services segment and its talent segment. Revenue more than doubled to RM84.39 million from RM34.6 million.
Looking ahead, Awantec said its software and services segment has solidified its position as the premier partner with managed service provider or MSP status for Google Cloud in Malaysia under the government’s Cloud Framework Agreement (CFA).
“Our consecutive quarterly profits prove that our transformation plan has been effective and the results are showing," Awantec chairman Datuk Syed Naqiz Shahabuddin said in a statement, referring to the fact that this is the group's fourth consecutive quarter in the black.
"We are confident and optimistic that we will be able to sustain this performance moving forward," he said.
The group is now directing efforts towards enhancing products and services in collaboration with partners, he said, to align with the nation’s cloud-centric digital transformation plan. This endeavour encompasses providing analytics, facilitating cloud migration, managing big data, implementing artificial intelligence and driving business transformation through ERP solutions to foster future growth, he added.
Awantec shares have been suspended since April 26 as the group failed to submit its regularisation plan to regulators for approval within the stipulated timeframe. The stock was last traded at 25.5 sen, with a market capitalisation of RM201.42 million.
Awantec, which is facing delisting because of that, has appealed against its suspension, on grounds that the group has demonstrated that its business operations are viable, sustainable and have growth prospects.
Formerly known as Prestariang Bhd, Awantec has been classified as an affected listed issuer since January 2021, following the termination of its wholly-owned subsidiary Prestariang Systems Sdn Bhd’s membership in the Microsoft Partner Network.