ECS ICT posts lower 1Q profit on higher revenue

Business & Markets 2013
Written by theedgemalaysia.com
Tuesday, 07 May 2013 17:17
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KUALA LUMPUR (May 7): Malaysia’s leading ICT distributor ECS ICT
Bhd posted a net profit of RM6.4 million for the first quarter of 2013
ended March (1Q13), lower compared RM8.1 million earned in the
same quarter last year.
Basic earnings per share stood at 3.5 sen, compared to 4.5 sen.
But it recorded a 4.9% increase in revenue to RM320.3 million for its
first quarter, versus RM305.4 million previously.
ECS attributed the topline growth to higher revenue contributions from
all three business segments – ICT Distribution, Enterprise Systems and
ICT Services.
Mr. Foo Sen Chin, managing director of ECS ICT, said in a statement: “We are pleased with our 1Q13 revenue performance,
which was due mostly to better consumer spending on ICT products such as tablet and notebook personal computers (PCs)
during the quarter under review.”
On ECS’s prospects for the rest of its year in 2013, Foo said that the group would be able to take opportunities from the
many positives within the Malaysian market.
Malaysia’s ICT spending is expected to hit USD6.9 billion in 2013, up 7.0% from 2012’s estimated USD6.5 billion.
This growth would be fuelled by economic growth of between 5.0% and 6.0% this year.
“Based on these factors, we are optimistic on our growth prospects for the remaining three quarters of the year…
“The new distributorships that we secured in 1Q13 – the Lenovo smartphones, the Samsung mobility devices for the
enterprise market, the Microsoft Surface RT tablet PC and IBM’s enterprise cloud computing solutions, plus our on-going
strategy to grow our products and services portfolio – will allow us to expand our business,” Foo said.