KUALA LUMPUR (June 24): Kronologi Asia Bhd's (KL:KRONO) net profit fell 43.43% to RM1.44 million in the first quarter ended April 30, 2024 (1QFY2025), down from RM2.55 million the previous year, which it attributed to lower profit from its business operations and higher operating costs — such as solution centre-related expenses — as well as right-of-use assets and lower revenue.

Earnings per share dropped to 0.19 sen in 1QFY2025, as compared to 0.35 sen per share in 1QFY2024.

Quarterly revenue declined 8.4% to RM57.75 million from RM63.03 million a year earlier. Its enterprise data management (EDM) infrastructure technology segment made up RM40.83 million or 70.7% of its total revenue, while the EDM as-a-service segment made up the balance.

Its quarterly revenue was the lowest in two years since 1QFY2023, when it posted RM57.33 million. 

The company did not declare any dividend. 

Reviewing its performance for 1QFY2025, Kronologi said operating results in the first quarter of its fiscal year are generally slower than other quarters of the financial year due to lower clients’ information technology (IT) expenditure activity.

Going forward, Kronologi group chief executive officer Edmond Tay Nam Hiong sees the group’s customer retention remaining strong, as he highlighted comparable gross margin experienced by the group during the period as it worked with customers to overcome the uneven economic recovery and their planned IT spending over the next few quarters.

“We are retooling our balance sheet structure and strategically align our investments to position Kronologi for long-term agility, besides serving increasing demand for enterprise wide generative AI (artificial intelligence) acceleration,” he added.

Shares of ACE Market-listed Kronologi declined by 1.5 sen or 3.4% to close at 42.5 sen on Monday, giving it a market capitalisation of RM378.43 million.