KUALA LUMPUR: Green Packet Bhd returned to the black with a net profit of RM24.38 million for the three months ended June 30, 2015, from a net loss of RM50.32 million in the previous corresponding period.

Revenue was also higher by 8.2% to RM78.4 million from RM72.4 million a year ago.

According to chief executive officer Kay Tan, the positive progress made in its operational business pillars (solutions and communications businesses) was attributable to the group’s effective marketing strategy.

“With showcases at international telecommunication events, we have broadened our market opportunities, and thus have a stronger presence in important regions such as Europe and Asia,” he said in a statement yesterday.

“Our trial clients have expanded twofold from the beginning of this year, which evidentially contributes in our LTE (long-term evolution) business growth in these two regions,” he added.

For the 12-month period ended June 30, 2015 (FY15), the 4G network operator and service provider posted a net profit of RM56.38 million on revenue of RM339.14 million.

There was no comparative year-on-year figures as its FY14 financial accounts were prepared for a period of 18 months ended June 30, 2014.

Green Packet’s solutions pillar gained 16.6% higher sales quarter-on-quarter and grew revenue to RM29.5 million. The business unit shipped out 21.5% more devices compared with the same quarter in 2014.

“For 2015, we will continue to focus on strengthening our visibility, as well as further enhancing our products and service offerings,” said Tan.

“Green Packet has created many firsts in the industry, including the world’s first multimode LTE modems,” he said, adding that the group’s expertise lies in engineering solutions that work for specific clients and respective markets.

Meanwhile, the communications pillar continued to deliver a stable growth of RM48.9 million, an increase of 17.3% in quarterly revenue year-on-year.

Going forward, Green Packet foresees the remaining financial periods to be challenging.

“The software and devices business is expected to experience intense competition in its LTE sales, resulting in pressure on its gross margins for the remainder of the year.

“This is mitigated by the communication services business unit, which is expected to have moderate sales growth and a similar profitability level for the remainder of the year,” it said.

Green Packet (fundamental 1.1; valuation: 0.3) shares closed half a sen or 2.5% higher at 20.5 sen yesterday, giving it a market capitalisation of RM137.15 million.

This article first appeared in digitaledge Daily, on August 28, 2015.