KUALA LUMPUR (Aug 4): SNS Network Technology Bhd (KL:SNS) said it expects to recognise revenue from its US$298.66 million (RM1.22 billion) contract for the supply of high-performance artificial intelligence (AI) servers to a Singapore-based customer in its current fiscal year.
Delivery of all the products under the deal is expected to be ready five months after the customer’s advance payment and SNS Network’s subsequent placement order with the manufacturer of the servers.
“Accordingly, the company expects revenue from the proposed supply to be recognised in the financial year ending Jan 31, 2027 (FY2027), subject to the manufacturer’s production, allocation, logistics, and final delivery schedules, and does not constitute a guaranteed delivery commitment,” it noted.
Terms of the advance payment as well as the identity of the manufacturer were not disclosed in the filing.
SNS Network is a supplier and authorised dealer of information technology hardware.
In January this year, the Ipoh-based company launched the SNS AI Factory, which provides enterprises, government agencies and research institutions with a secure platform to design, test and deploy tailor-made AI solutions. The facility is powered by graphics processing units from Nvidia.
The AI server contract with the Singapore-based customer is the largest in SNS Network’s more than 20-year history.
When it was announced on July 27, the company’s shares were actively traded, though its share price has remained largely flat.
The initial announcement stated the job would contribute positively to earnings for the financial year the servers were delivered, and revenue is recognised.
Shares of SNS Network ended half a sen or 0.91% higher at 55.5 sen, valuing the company at RM937.16 million.