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Stratech Systems Records Net Profit of S$0.7 Million for its 9-month Financial Results
Singapore , 15 February 2009 – Mainboard-listed Stratech Systems Limited (“ Stratech ” or “the Group”) announced a net profit after tax of S$0.7 million for the 9-month financial period ended 31 December 2008 (“9M2009”), an increase of S$0.2 million from the half financial year ended 30 September 2008 (“1H2009”).
Gross profit of S$7.0 million (excluding direct manpower cost) was also recorded for 9M2009 with the Group’s revenue totalling S$11.0 million, up from S$7.2 million for 1H2009. The revenue was generated from progress billings for the iFerret™ (intelligent Airfield/Runway Surveillance & Foreign Object & Debris Detection System) contract with Civil Aviation Authority of Singapore and the substantial completion and second order of Super BullsEye® II (Advanced Weapons Scoring System) to a major air force in the Asia Pacific. In addition, work continued to be carried out for the S$2.7 million integrated website enhancement and data migration contracts from Media Development Authority of Singapore. Sales from iVACS® (intelligent Vehicle Access Control System) and current e-Systems business also contributed to the revenue.
The net operating expenses for 9M2009 included salaries and employee benefits of S$4.0 million, depreciation and amortisation expense of S$1.0 million and other operating expenses of S$1.3 million.
The Group’s net assets grew to S$13.0 million at the period-end, up from S$12.2 million at 31 March 2008 .
Commenting on the 9-month results, Dr David K.M. Chew, Executive Chairman of Stratech , said: “Despite the challenging economic climate, we are pleased that we managed to secure revenue from new businesses amounting to S$3.2 million whilst existing contracts contributed S$7.8 million to our 9-month results. Going forward, Stratech will continue to focus on our ‘powered by Stratech ’ strategy to unlock the value of our intellectual properties.”
The Group’s order book as at 31 December 2008 stood at S$40.7 million (including options up to 10 years). In the light of the current uncertain economic conditions, Stratech has launched a rights issue to enhance financing of its order book and future sales secured by the Group and its partners.
About Stratech Systems Limited (“Stratech”)
Stratech Systems Limited (“Stratech”) was listed on the mainboard of the Singapore Exchange in 2000. It is principally engaged in the design, development, integration, implementation, maintenance and project management of information technology and advanced technology systems. The Group delivers large-scale complex, real-time, mission-critical systems in the areas of intelligent Vision, intelligent Transport Systems and e-Systems for governments and businesses.
Founded in 1989, the Group has established an impressive track record serving industries such as aerospace and defence, financial services, government, healthcare, homeland security and transportation (air, sea and land). The Group develops and implements advanced technology solutions that achieve significant business transformation and competitive advantage for its clients.
In 2006, Stratech won the Research and Development prize for its intelligent Airfield/Runway Surveillance and Foreign Object and Debris (FOD) Detection System at the Asia Pacific ICT Awards. Stratech’s iFerret™ (the world’s first system to utilise intelligent Vision to detect and classify foreign objects, with the ability to pinpoint the location of the foreign objects) was awarded The Enterprise Challenge (TEC) initiative by the Prime Minister’s Office of Singapore in 2006.
For more information, please visit www.stratechsystems.com
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