Thu, Nov 07, 2019 - Page 12 News List

Sysage net profit surged 45% in Q3

By Natasha Li  /  Staff reporter

Information and communications technology (ICT) solutions provider Sysage Technology Co (聚碩), which sells products from companies such as Cisco Systems Inc, IBM Corp and Oracle Corp, yesterday reported a 44.73 percent annual surge in net profit to NT$119.36 million (US$3.93 million) for last quarter.

That translated into earnings per share (EPS) of NT$0.71, compared with NT$0.59 a year earlier, it said.

Revenue rose 6.93 percent to NT$3.18 billion, and gross margin improved 1.04 percentage points to 10.48 percent, it said.

In the first three quarters, net profit totaled NT$314.35 million, up 24.16 percent year-on-year.

EPS grew from NT$1.76 to NT$2.07 during the same period.

Cumulative revenue rose 9.63 percent to NT$9.32 billion and gross margin rose to 10.1 percent.

Sysage vice president Mao Mei-lung (毛美龍) provided a flat outlook for next year.

“As long as there’s no strong turbulence on the market, business should be steady,” he said.

However, the company is optimistic about the outlook for its data availability, backup and application tools business, which contributed 27 percent to overall revenue, Mao said.

“As most of our clients specialize in systems integration, we are looking at growing demand for applications such as AI [artificial intelligence] and big data,” Mao said, citing as examples banks and financial institutions that need tools to help analyze and store large amounts of data.

“They [banks and financial institutions] are also increasingly using [Internet] robots for customer service,” he said.

Sysage’s network infrastructure, security and management business, which contributed 30 percent to overall revenue, would also benefit from the trend, as cybersecurity becomes an increasingly vital issue, he said.

The company’s main source of revenue remains its system platform and application business, which brought in 40 percent of total revenue, Ma said, adding that he hoped to boost revenue through the adoption of 5G technologies.

“The 5G rollout would need a lot of basic Internet infrastructure, such as host computers, switches and routers,” which would benefit the company in the long run, he said.

“However, we cannot determine the speed at which 5G would be deployed, as that would depend ultimately on the government and telecoms,” he added.

The remaining 5 percent of the company’s revenue comes from total solution consultancy and information-technology education services.

The company is continuously scouring the market for new ICT products to broaden its already-extensive portfolio and drive revenue growth, Mao said.

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