Iris Corp's 3Q net loss widens on lower revenue

KUALA LUMPUR (Feb 22): Iris Corp Bhd, which has been thrust into the limelight after its deputy managing director Datuk Hamdan Mohd Hassan was arrested by the Malaysian Anti-Corruption Commission for alleged graft, saw its net loss widen to RM1.79 million or 0.08 sen loss per share in the third financial quarter ended Dec 31, 2016 (3QFY2017) from RM922,000 or 0.05 sen loss per share a year ago on lower revenue and higher cost of sales. 

Quarterly revenue fell 6.7% to RM135.46 million from RM145.14 million in 3QFY2016, mainly dragged down by its property development and construction sub-division as well as its education division.

The poor quarterly results pulled the group down to post a net loss of RM27.03 million or 1.21 sen loss per share for the nine months ended Dec 31, 2016 (9MFY2017) compared with a net profit of RM4.53 million or 0.22 sen per share in 9MFY2016.

Revenue for 9MFY2017 fell 18.4% to RM303.14 million from RM371.47 million a year ago.

On prospects, Iris said the market conditions for FY2017 is expected to remain challenging as the recovery of the global economy is modest.

“In the domestic front, the ringgit and commodities remain volatile and property market remains sluggish. Given the above uncertainties and the current business environment, the group will continue to streamline its business divisions to achieve better operational efficiency,” it added.

On its part, Iris said the group has embarked on cost optimisation exercises and will capitalise its expertise and skills on trusted identification to develop new security systems and solutions to ensure the group remains competitive in the challenging business environment.

Iris shares closed unchanged at 12.5 sen today, with 14.07 million shares traded, for a market capitalisation of RM281.13 million. — theedgemarkets.com

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