Software solutions provider Silverlake Axis, recently hit by an anonymous short-seller report, reported flat fourth-quarter earnings.
It announced a 1 per cent rise in fourth-quarter net profit to RM74.7 million (S$25 million) yesterday.
Revenue for the past three months up to June 30 slipped 8 per cent to RM126.4 million, owing to lower contributions from software licensing, the sale of software and hardware products, and credit and cards processing.
The firm said this was offset by the increase in revenue from the maintenance and enhancement services, insurance processing and software project services.
Full-year net profit rose 14 per cent to RM282.7 million, while revenue inched up 3 per cent to RM516 million.
AT A GLANCE
RM74.7 million (+1%)
RM126.4 million (-8%)
DIVIDEND PER SHARE
1.2 Singapore cents (-33.3%)
Quarterly earnings per share was 12.59 sen, up from 11.09 sen a year ago, while net asset value per share was 28.48 sen on June 30, up from 27.46 sen a year earlier. The firm proposed a final dividend of 1.2 Singapore cents per share.
Silverlake Axis was recently targeted in a short-seller's critique. A 42-page short-seller report, written by a "razor99", has been circulating among investors.
Mr David Gerald, president and chief executive of the Securities Investors Association Singapore, previously said in a statement that "it is unfortunate that such an anonymous report can have an impact on the stock, as it lacks credibility".
He also urged the firm to respond immediately to the report's accuracy, adding that this was not the first time the stock has come under attack, but Silverlake Axis has yet to do so.
The firm said in its filing: "The group will continue to pursue business opportunities in North-east and South-east Asia, as banks in this region undergo consolidation, revenue enhancement and cost management activities, as well as invest in digital and mobile banking initiatives to improve their market position."
The firm added that it will continue to invest selectively in new software solutions and services.
There are plans to work with business partners to "expand its business in existing, and new markets in China, Australia and New Zealand," added the firm, which has been on a trading halt since last Friday .
Silverlake Axis shares closed 20.5 cents lower at 63.5 cents last Friday.