KUALA LUMPUR (Sept 15): Omesti Bhd is looking to raise its recurring income contribution to more than 50% of its total revenue within two to three years, mainly through longer term collaborations with existing clients.

The recurring income segment contributed about 20% to its FY17 topline.

"One of our aspirations is to grow that recurring income base and part of this is hopefully with more collaborations with SSM (Suruhanjaya Syarikat Malaysia) and with the courts," group chief financial officer Richard Voon told reporters after Omesti's annual grand meeting today.

Voon was referring to the group's recent win of a RM17 million contract from SSM to develop and implement a new financial reporting standards platform, named Extensible Business Reporting Language (XBRL), which will enable companies to file annual returns and audited accounts electronically.

Omesti is also involved with the development and roll-out of the eCOURTS Digital Court Infrastructure platform, which includes case management features and e-filing modules for civil and criminal cases, as well as a revamped public portal.

Concurrently, executive director Mah Xian-Zhen said Omesti is also focusing on building up the recurring income base for its SME Solutions segment through its joint venture with Sri Lanka's human capital management systems firm, Microimage HCM (MIHCM).

"The joint venture that we have with MICHM is also to provide products that are on the software-as-a-service model to the SMEs [because] it's a lower outlay for customers and they pay per employee on a monthly basis," she said.

Omesti's sources of recurring income include, among others, its software-as-a-service solutions, ongoing maintenance/support services on existing contracts, outsourcing services on a broader basis, subscription to its accounting software, human resource management solutions and payroll services.

For its first quarter ended June 31, 2017 (1QFY18), Omesti narrowed its losses to RM460,000 from RM3.57 million in 1QFY17, mainly due to higher gross profit margin recorded by its business performance services segment.

Quarterly revenue, however, slid 6% to RM89.19 million from RM94.96 million, mainly due to lower order fulfilments during the quarter under review.

"We are working very hard to ensure that the shareholders and investors of our company will be able to see better financial performance [for FY18]," Voon added.