KUALA LUMPUR (Nov 28): Iris Corp Bhd saw its net profit decline 22.2% to RM5.68 million in second quarter ended Sept 30, 2014 (2Q FY15), down from RM7.308 million a year ago, mainly due to higher cost of sales, finance costs, plus administrative and operating expenses.

In a statement to Bursa Malaysia today, Iris said its revenue however, grew by 20% to RM157.487 million, up from RM131.357 million a year before, thanks to higher contribution from its sustainable development, agro & food technology and Koto Industrial Building Systems division.

For the six months period, the digital-identity specialist company’s net profit fell sharply by 79% to RM3.13 million, compared to RM14.98 million a year earlier. The lower profit was also attributed to the higher cost of sales, finance costs, as well as administrative and operating expenses.

Meanwhile, its cumulative revenue grew 7.3% to RM284.764 million, from RM265.271 million.

Commenting on future prospect, Iris said the outlook for its core business-trusted identification division, remain bright in FY15.

“This division’s revenue is expected to be derived mainly from the trusted identification projects, namely e-passport inlays for Malaysia and Nigeria, e-passport projects for Senegal and Guinea, as well as MRP passport project for Bangladesh,” it said.

At the end of morning trading session today, Iris remained unchanged at 31.5 sen, with a market capitalisation of RM642.7 million. The counter, which was traded between 31 sen to 32 sen, saw more than 1.995 million shares changing hands.