Addvalue Technologies Ltd's Q2 FY2011 Revenue Soared by more than 13-fold to S$6.1 million

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Q2 FY2011 revenue soared by more than 13-fold to S$6.1 million and net profit accelerated to S$2.0 million from a loss of S$2.8 million in Q2 FY2010. In tandem, H1 FY2011 revenue soared by nearly 10-fold to S$12.0 million and net profit accelerated to S$3.3 million from a loss of S$3.4 million in H1 FY2010

Addvalue Technologies Ltd

Our sterling set of financial results adds credence that Addvalue is gaining recognition as a reliable and quality developer and manufacturer of land and maritime satellite communications terminals and provider of related innovative solutions

Singapore Exchange Mainboard-listed Addvalue Technologies Ltd (“Addvalue” or the “Group”), a leading global developer and manufacturer of mobile satellite terminals supporting coverage provided by premier mobile satellite communication operators such as Inmarsat plc and Thuraya Telecommunications Company, announced its second financial quarter results (“Q2 FY2011”) and its first half-year results (“H1 FY2011”) ended 30 September 2010 in respect of the financial year ending 31 March 2011 (“FY2011”).

Q2 FY2011 and H1 FY2011 Results Review
The focused business pursuit of the Group has led it to continually deliver a sterling set of results since the last financial quarter of FY2010.

Against the continued robust sales of a wider range of Inmarsat-centric land and maritime products, the Group turned in an impressive turnover of S$6.1 million for Q2 FY2011 (compared to that of S$0.5 million for Q2 FY2010) and S$12.0 million for H1 FY2011 (compared to that of S$1.2 million for H1 FY2010). At the mid-year point, the Group already matched the turnover it attained for the entire financial year ended 31 March 2010 (“FY2010”).

As a result of the marked increase in turnover, the gross profit of the Group surged by more than 13-fold from S$0.3 million in Q1 FY2010 to S$3.3 million in Q2 FY2011 and by more than 12-fold from S$0.5 million in H1 FY2010 to S$5.9 million in H1 FY2011, surpassing the gross profit of S$3.7 million attained by the Group for the entire financial year of FY2010 by 59.5%. The gross profit margin of the Group also improved significantly from 53.4% in Q2 FY2010 to 54.3% in Q2 FY2011 and from 40.5% in H1 FY2010 to 48.8% in H1 FY2011 due principally to sales with better mix of higher yielding products.

Coupled with the Group’s ongoing concerted efforts in containing its costs with a view to continuingly improve its efficiency and productivity, the net profit of the Group reversed drastically from a net loss of S$2.8 million in Q2 FY2010 to a profit after tax of S$2.0 million in Q2 FY2011 and more startlingly from a net loss of S$3.4 million in H1FY2010 to a profit after tax of S$3.3 million in H1 FY2011.

Following the notable results achieved in H1 FY2011 and the placement exercise carried out by the Group in Q2 FY2011, the Group greatly improved:

  • its cash position from S$0.3 million as at 31 March 2010 to $0.9 million as at 30 September 2010;
  • its working capital position which reversed from a negative S$2.8 million as at 31 March 2010 to a positive S$2.7 million as at 30 September 2010; and
  • its gearing from 95.2% as at 31 March 2010 to 37.8% as at September 2010.

Prospects

The SABRE Ranger land terminal, an Inmarsat-centric BGAN terminal which Addvalue developed for superior supervisory control and data acquisition (SCADA) solutions in supporting upstream oil and gas, utility, mining, water-management and tower-monitoring markets, is gaining traction and momentum in the respective market places since its introduction in 2009. Recently, the Group also made available another Inmarsat-centric FB250 FleetBroadband maritime terminal, Globe i250, following the launch of the new terminal by Globe Wireless. The new terminal is specially customised to the needs of Globe Wireless to further enhance the Group’s range of product offerings and competitiveness in the market places.

“Our sterling set of financial results adds credence that Addvalue is gaining recognition as a reliable and quality developer and manufacturer of land and maritime satellite communications terminals and provider of related innovative solutions,” remarked Dr Colin Chan, Chairman and CEO of Addvalue.

“We are excited about our prospects and have in store other scheduled plans to roll out new satellite-based products and applications as well as to expand into new markets over the next 12 months,” added Dr Chan.

Barring any unforeseen circumstances and delay in the procurement of certain key production components amidst the present tight supply conditions globally, the Group remains optimistic about its performance for FY2011.

This press release should be read in conjunction with Addvalue’s results announcement for Q2 FY2011 posted on the Singapore Exchange on 1 November 2010.

About Addvalue (http://www.addvaluetech.com)

Headquartered and founded in Singapore in 1996, Addvalue Technologies Ltd is a leading one-stop digital, wireless and broadband communications technology products innovator, which provides state-of-the-art satellite-based communication terminals and solutions for a wide variety of voice and IP-based data applications. Addvalue has established itself as a key partner to many major players in the satellite communication industry, counting amongst its customer base internationally-renowned leaders such as Inmarsat, Thuraya, Stratos, Vizada, SingTel and Satlink.

Through the recent years of consistent business transformation, Addvalue has emerged to be a leading global developer and manufacturer of mobile satellite terminals supporting coverage provided by premier mobile satellite communication operators such as Inmarsat and Thuraya. These terminals are ideal choices for communications in areas around the world where terrestrial networks are non-existent, inept or ineffective. This is particularly so for maritime communications which rely almost entirely on satellite communications, and Addvalue’s products are well poised to address these needs.

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