Procurri Q1 earnings surge 75% to $1.8m

Procurri Corporation's earnings per share rose to 0.62 cent, from 0.35 cent the year prior.
Procurri Corporation's earnings per share rose to 0.62 cent, from 0.35 cent the year prior. PHOTO: SGX

SINGAPORE - Procurri Corporation posted a 75 per cent rise in net profit to $1.8 million for the first quarter ended March 31, from $1.0 million a year ago.

This was on the back of higher contributions from its IT distribution and lifecycle services segments, the enterprise hardware supplier said in a regulatory filing on Thursday (May 2) before the market opened.

Earnings per share rose to 0.62 cent, from 0.35 cent the year prior. No dividend was declared, similar to a year ago. Shares of the company last closed at 33 cents on Tuesday, up 1.5 per cent, or 0.5 cent.

Revenue for the quarter rose 8.7 per cent to $53.8 million, from $49.5 million a year ago. The group's IT distribution segment saw a higher contribution from its North and South America market, with an increase of 5.1 per cent to $35.7 million, from $34.0 million the year before.

It also recorded a 16.8 per cent rise in revenue for its lifecycle services segment to $18.1 million, from $15.5 million the year before. This was from better performance from the North and South America, and Middle East and Africa markets.

Selling expenses increased 41.8 per cent to $4.5 million, from $3.2 million the year before.

The group added that it was "well-poised for growth" in fiscal 2019, with a favourable outlook in the industry.

"Barring unforeseen circumstances, the group expects to leverage its improved capabilities and widened reach to accelerate its momentum and gain an edge in the market," it added.

Sean Murphy, chairman and global CEO of Procurri, said the group continues to capture more of the market in data centre equipment and lifecycle services as it forms more partnerships with top-tier original equipment manufacturers and channel partners, such as Nutanix and PureWRX.

Gaining full control of Rockland Congruity has also bolstered its capabilities and competitiveness in the third-party IT maintenance industry, he added.

Mr Murphy said the group is also well-poised to seize opportunities in the higher-margin lifecycle services segment, such as migration, maintenance and IT asset disposition opportunities. He added that Novo Tellus's strategic input will also help the group expedite its expansion in the Asia-Pacific region.

"As we embark on our next arc of growth, we will leverage our improved capabilities and actively seek partnerships and acquisitions to accelerate our growth momentum," Mr Murphy said.