News Article -- February 15, 2007
CSA Expects Good Results
(source: The Star, StarBiz)MD: IT outsourcing to boost profit
Petaling Jaya: Computer Systems Advisers (M) Bhd CSA is confident
of achieving commend able results for the financial year ending March 31, managing director Chuah Tai Eu said.
"CSA expects recurring income from information technology (IT) outsourcing as well as the customer services and support segments to boost its operating profit," he told reporters during a briefing on its third-quarter financial results yesterday.
Both segments contributed close to 80% of operating profit for the nine months ended Dec 31, 2006. The remainder came from IT systems and solutions.
"Our pre-tax profit has been going up (in the first three quarters of this financial year) so we are confident," Chuah said.
Revenue for the third quarter grew 14.4% to RM112.36 mil from RM98.19 mil in the same quarter a year ago while net profit increased 26.8% to RM6.14 mil. Earnings per share rose to 6.07 sen from 4.79 sen before.
Net profit for the first nine months came in at RM18.91 mil, close to the RM20.4 mil achieved for the whole of the previous financial year.
CSA director Peter Yong said the IT outsourcing division now contributed close to 50% of the company's earnings before tax, surpassing its own projections.
"The coming financial year will see us aggressively pursuing new outsourcing contracts in Malaysia and with global customers of Computer Sciences Corp (CSC)," he added. CSA is a member of the CSC group.
CSA recently spent RM14 mil to expand its data centre to 23,000 sq ft from 10,000 sq ft to deliver more value added data centre services.
"We will continue to secure IT outsourcing deals globally by leveraging on the hub. About 50% of revenue in the segment comes from countries in the Asia-Pacific region," Chuah said.
Major contracts secured in the third quarter included three systems integration projects. They are a RM2.4 mil contract to supply Microsoft licenses and professional services for a major financial institution, a RM2.2 mil contract to supply Oracle licenses for a television station, and a RM3.2 mil contract from a government agency to supply and deploy IBM servers and storage systems.