Dataprep may return to black in FY07

September 28, 2006 - By Isabelle Francis

Dataprep Holdings Bhd expects to finalise its proposed corporate exercise and return to profitability early next year, said its chief executive officer Chew Liong Kim (pic).

He expects it to return to the black in the current year ending March 31, 2007 due to better sales and gross profit margins, especially from its outsourcing and managed services (OMS). It incurred a net loss of RM1.81 million in FY06.

Chew said its OMS division was estimated to account for 75% of its revenue in FY07. In total, Dataprep now has an order book of RM71.8 million.

"This year we want to do more than the RM74 million revenue (achieved in FY06). We're very confident that we will achieve that.

"Our sales mix is towards more services. Hardware business' gross profit is about 5% but services' about 20% to 25%," he told reporters after its AGM in Petaling Jaya.

Chew said its overseas revenue contribution was expected to triple to 30% in the next three years from 10% now. He said it was eyeing Vietnam and Indonesia as its new markets.

He said it was hopeful of securing at least two projects in the Middle East in the current year. It has so far bid for a total of up to RM150 million Middle East projects.

On the local front, he said it would fully roll out its over RM20 million e-court project by year-end, involving some 11 courts. It is also in talks to offer similar services to a client in the West Asian region.

Chew said the PN17 company was still waiting for the approval of its proposed corporate exercise that was submitted to the Securities Commission last July.