KUALA LUMPUR (Nov 25): AwanBiru Technology Bhd (AwanTec), formerly known as Prestariang Bhd, saw its net loss in the first financial quarter ended Sept 30, 2021 (1QFY22) widen to RM1.68 million from RM968,000 a year ago on lower revenue.

Quarterly revenue declined by almost 67% to RM11.76 million from RM35.5 million in 1QFY21 due to lower revenue generated from its software and services and talent segments, according to its bourse filing with Bursa Malaysia.

On a quarter-on-quarter (q-o-q) basis, the group’s net loss narrowed against RM1.8 million registered in the immediate preceding quarter (4QFY21) on the back of higher revenue than the RM2.81 million recorded in 4QFY21.

Moving forward, the group expects that while the growth trajectory may see some marginal fluctuation in the near term, it will stabilise on the back of the recurring income from renewals and continuing managed services revenue in the medium to long term, which is typical for cloud based businesses.

“The company has laid all the groundwork to be a key player in tapping the vast opportunities in the national digitalisation process, which is aligned to the MyDIGITAL Initiative and Malaysia Digital Economy Blueprint.

“The board is of the view that the group is in a good position to capitalise on the task of meeting the market requirement for technology and talent services to spearhead Awantec’s business growth,” it said.

Shares in AwanTec were five sen or 0.70% higher to close at 72 sen, valuing the company at RM568.17 million.

NOTE: This article has been amended for accuracy.