REDtone eyes government projects worth RM800m

by **hlk** Tue 13 Mar 2012, 18:19

REDTONE International Bhd, a communications solutions provider, is bidding for government projects worth up to RM800 million.

"Over the near to medium term, we see an increasing use of Internet and network by the public sector and we certainly have the solutions and capability to address their needs," said REDtone managing director Datuk Wei Chuan Beng.

Wei added that he expected revenue contribution from the public sector to be more "balanced" over the next few years.

Currently, contracts from the government and related agencies contribute about 30 per cent of the company's revenue.

He was speaking to the media after the completion and handover of MyREN (Malaysian Research and Education Network) project (phase 2B) to the Higher Education Ministry.

Also present was Higher Education Minister Datuk Seri Mohamed Khaled Nordin.

The project, which costs RM14.3 million (for phase 2B alone), is for a high-speed research and education network encompassing all public universities, participating private universities, polytechnics, community colleges and research institutes.

Through its extension to six regional points of presence, it now links more than 300,000 researches, students and educationalists locally to 8,000 institutions internationally.

"The successful completion of phase 2B of myREN underscores Redtone's competency in deploying tailor-made solutions and managing a wide-area network," said REDtone deputy chairman Datuk Wira Syed Ali Syed Abbas Alhabshee.

"With the government relying more on the Internet to conduct their business now, we hope to be given more opportunities to participate in more government projects."

Wei added that the government sector would play a key role in the company's plan to return to profitability.

"We see the public sector playing an increasing role in our business."

The company posted a net loss of RM751,000 for the six months ended November 30, 2011, a big improvement from the RM1.78 million loss in same period a year ago.

REDtone shares on Bursa Malaysia fell 3.7 per cent to 26 sen yesterday, while the benchmark FBM KLCI fell by 0.9 per cent, or 14.25 points, to 1,564.75.