KUALA LUMPUR (Aug 28): Datasonic Group Bhd's net profit for the first financial quarter ended June 30, 2020 (1QFY21) slumped by 66% to RM4.77 million.
The sharp drop in earnings was because its main income contributor — supply of passports to the Immigration Department — was halted by the implementation of the Movement Control Order (MCO) to curb the Covid-19 outbreak.
Its quarterly revenue came in at RM39.39 million, which was short by one-third compared with RM58.31 million a year ago. Earnings per share (EPS) contracted to 0.24 sen from 1.04 sen the year before.
However, the e-government service provider's board has declared an interim dividend of 0.5 sen per share, which is more than double of its EPS during the quarter under review, according to the group's filing with Bursa Malaysia.
On a quarter-to-quarter basis, Datasonic's net profit was 61% lower against RM12.27 million in the preceding quarter ended March 31, 2020, while revenue declined 22% from RM50.7 million.
"The existing phases of the MCO implemented in Malaysia since March 18, 2020 as a result of the coronavirus outbreak, particularly on the issue of international travel, is expected to have an impact on the group's operations.
"The board expects the prospects for the coming quarters to be brighter in line with the national economic recovery phase and new business opportunities in the areas of public security, public health and also e-commerce,' said Datasonic when commenting on its prospects.
Datasonic's share price closed at RM1.32 today, up one sen, with three million shares traded. Year to date, the stock is still down 10.8%.