Iris sinks into red in 1Q

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KUALA LUMPUR (Aug 29): Iris Corp Bhd sank into the red in the first financial quarter ended June 30, 2014 (1QFY14), with a net loss of RM2.55 million compared with a net profit of RM7.68 million a year ago on lower contribution from its traditional core business namely trusted identification, and payment and transportation divisions.

Revenue slipped 5% to RM127.28 million from RM133.91 million in 1QFY13.

In a filing with Bursa Malaysia today, Iris attributed the lower contribution from its traditional core business to lower revenue generated from overseas contracts as the management’s focus was on issues of collection and setting up of new e-Passport system in Guinea.

The progress of the Guinea project, however, was affected by the Ebola epidemic in West Africa, Iris said.

In addition, the firm said the weakening of the US dollar against the ringgit has led to an unrealised loss in foreign currency amounting to RM2.2 million in this quarter.

Nevertheless, Iris believes that prospects for its core business remain bright for the financial year ending March 31, 2015.

Revenue is expected to be derived mainly from the trusted identification projects, it added.