Automated Systems profit down to HK$18.8mn

The company further strengthens foothold in Asia Pacific as it introduces i-Sprint products to Hong Kong.

Automated Systems Holdings Limited (“ASL”), a leading IT services provider in Hong Kong, announced its interim results for the six months ended 30 June 2011. During the period under review, the Group’s revenue amounted to HK$761.1 million, up by 4.3% compared to the corresponding period last year. For the three months ended 30 June 2011, the Group’s revenue was HK$338.6 million, increased by 2.2% compared to the corresponding period last year.

In the review period, profit before income tax was HK$24.3 million (For the six months ended 30 June 2010: HK$39.5 million). Profit attributable to the equity holders of the Group in the review period was HK$18.8 million (For the six months ended 30 June 2010: HK$32.7 million). For the three months ended 30 June 2011, profit before income tax was HK$7.6 million (For the three months ended 30 June 2010: HK$10.8 million). Basic earnings per share in the review period were HK 6.03 cents (For the six months ended 30 June 2010: HK 10.50 cents). During the period under review, our increase in service revenue has led to an incremental increase in staff cost. Additional resources are being placed in investing projects and pursuit of new businesses. The acquisition of i-Sprint Innovation Pte Ltd (“i-Sprint”) during this period is an attribute to the increase of costs.

The Group maintained a healthy balance sheet with cash standing at approximately HK$194.7 million as of 30 June 2011. No debt was recorded during the period under review and the working capital ratio was 1.66:1. The Group’s order book balance was approximately HK$622.9 million, an increase of HK$72.9 million compared to the corresponding period last year.

Mr. Simon Leung, Executive Director and Chief Operating Officer of Automated Systems Holdings Limited said, “In accordance with our strategic plan, our revenue has steadily increased in the first half of the year. In the review period, we have successfully won diverse and sizable projects providing a wide range of IT solutions, managed services and IT infrastructure to our customers. After the acquisition of i-Sprint, the Group has received six orders from target customers in the banking and financial industry, all of whom have high requirements for IT security, with the majority of the orders coming from Chinese owned financial institutions. Through effective market penetration, the Group successfully introduced a full suite of i-Sprint products into the Hong Kong marketplace and laid out a solid foundation for the expansion of our customer base.”

For the six months ended 30 June 2011, product sales and service revenue were HK$460.4 million and HK$300.7 million, decreased by 1.3% and increased by 14.3% respectively against the corresponding period in 2010, and contributed 60.5% and 39.5% to the total revenue respectively compared to 63.9% and 36.1% from the corresponding period last year. For the three months ended 30 June 2011, product sales and service revenue were HK$177.0 million and HK$161.6 million, decreased by 9.7% and increased by 19.4% respectively compared to the corresponding period last year, according to an Automated Systems report.

Commercial and public sector sales for the six months ended 30 June 2011 contributed 39.8% and 60.2% to revenue respectively compared to 46.9% and 53.1% for the corresponding period in 2010. For the three months ended 30 June 2011, commercial and public sector sales contributed 46.6% and 53.4% to revenue respectively compared to 52.1% and 47.9% for the corresponding period in 2010.

Mr Leung concluded, “The Group wishes to expand across the Asia Pacific region and win more contracts through the constant provision of long-standing and market-proven solutions and services in order to fulfill the needs of regional customers on various IT areas. Meanwhile, the Group expects to achieve results in the IT security market within Greater China in the near future from ongoing efforts spent on the market in the first half of the year. With a view towards growth in its service business, the Group plans to implement a more efficient project management system by lowering its software business overhead through outsourcing and strengthening of its human resources management, investing in the establishment of a software management system and standardizing of its services through the creation of a software library.”