KUALA LUMPUR (June 28): SNS Network Technology Bhd (KL:SNS) said its net profit more than halved to RM3.74 million for its first quarter ended April 30, 2024 (1QFY2025), from RM7.89 million a year earlier,  mainly due to lower revenue and an increase in selling and distribution expenses.

Earnings per share fell to 0.23 sen from 0.49 sen, the ICT system and solutions provider said in a bourse filing. 

Revenue dropped 26.31% to RM213.59 million from RM289.84 million in 1QFY2024. This is the group's lowest recorded revenue since its initial public offering in September 2022.

SNS said that revenue in 1QFY2024 had been helped by orders secured to supply laptops for the education industry through commercial channels.

Sales secured through commercial channels are subject to customers’ annual budget cycles.

SNS has recommended an interim dividend of 0.25 sen, payable August 28. 

Meanwhile, the group said it has secured an order worth RM85.52 million to supply artificial intelligence (AI) hardware from a leading e-commerce platform. Delivery is scheduled for the third quarter of 2024.

SNS said the development in AI technologies will lead to a continuous growth in demand for ICT products, as it seeks to strengthen its existing customer base while attracting new ones.

The group offers AI solutions designed to transform businesses by enhancing operational efficiency and delivering personalised customer experiences.

SNS’ share price closed up half a sen or 0.7% to 75.5 sen on Thursday, bringing the group a market capitalisation of RM1.22 billion. Year to date, the stock has tripled from 23.5 sen.