KUALA LUMPUR (June 25): Datasonic Group Bhd reported a 5.6% increase in net profit to RM12.25 million for its fourth quarter ended Mar 31, 2020 (4QFY20), against a net profit of RM11.60 million last year, despite posting lower revenue during the quarter.

Due to lower supply of smart cards and passports in 4QFY20, the company posted a 10.58% decline in quarterly revenue to RM50.71 million from RM56.71 million previously.

This brings the tech firm's net profit for the full year FY20 to RM60.32 million, up 65% from RM36.53 million in the corresponding period a year ago, as revenue increased 12.74% to RM247.54 million from RM219.55 million.

At the same time, the company declared a fourth interim dividend of half sen per share, of which the entitlement and payment date will be announced in due course.

This brings its year-to-date FY20 payout to 3 sen, surpassing the 2.5 sen it announced in the corresponding FY19 period.

In a separate statement, Datasonic chairman Tan Sri Mohamed Hashim Mohd Ali said production has gradually picked up since they resumed operations in early May, after the movement control order (MCO) was eased, and new orders have been coming in.

“We consider the challenges from the Covid-19 pandemic and the resulting MCO as a small hiccup. Given the nature of our business is mainly on contract basis, orders from customers will continue to flow in.

“On the other hand, Datasonic has recently secured an additional spare parts scope for the maintenance services of card personalization centers at the National Registration Department (NRD) with a value of RM7.3 million, in addition to the current contract for maintenance services of card personalization centers at NRD which was awarded to Datasonic on June 3, 2019,” he added.

Commenting on prospects, the firm said the uncertainties arising from the Covid-19 pandemic have inevitably disrupted the global economic stability, and commercial activities, particularly international travel, is expected to have an impact on its operations.

However, it also said the pandemic had offered new business opportunities in the areas of public security, public health and also e-commerce.

“In these unprecedented business conditions, the board expects the prospects for the financial year ending March 31, 2021 to be challenging,” it said.

At the time of writing, shares of Datasonic traded down 3 sen or 2% to RM1.48, giving it a total market capitalisation of RM1.99 billion.