KUALA LUMPUR (Mar 26): Loss making information and communications technology firm, Digistar Corporation Bhd (Digistar), is expecting to turnaround its business by the end of 2016.
The company's managing director Datuk Wira Lee Wah Chong said, "We were in net loss position in the last financial year (ended Sep 30, 2014) because we have to pay interests for bonds we issued two years ago."
He added that Digistar was obligated to pay RM14 to RM16 million in interest for the debt papers, offsetting any profit which the company makes from its operations.
Despite that, Lee is optimistic that Digistar's fortunes would change next year.
He said that the construction of the Malaysian National Technology Advancement Centre (MTAC) in Alor Malacca, for which the bonds were issued, will be completed in mid-2016.
He said, "We have a 15-year concession from the government to provide asset management services for the MTAC once the construction is completed. This means that we will get a stable recurring income."
He added that the company is continuing to expand its central monitoring system division with the acquisition of three security services companies to set up three new command centres.