Dataprep to tap into services and solutions market

August 30, 2006 - By Ashwin Raman

Dataprep Holdings Bhd, which posted a net profit jump of 960.71% to RM297,000 in the first quarter ended June 30, 2006, intends to tap into the growing services and solutions market this year.

Its chief executive officer, Chew Liong Kim, said the company had targeted 70% of its sales this year to come from services and solutions and was on track to achieving it.

In 1QFY06, Dataprep’s huge leap in net profit was attributable to lower taxation and minority interests resulting from lower profits from subsidiaries not wholly owned by Dataprep.

Revenue for the quarter dropped 3.36% to RM17.5 million from RM18.11 million previously due to billing issues. Earnings per share were 0.39 sen from 0.04 sen last year.

Speaking to reporters at a briefing in Petaling Jaya on Aug 30, Chew said 65% of its sales in the first quarter were from services and solutions, while the remainder was from hardware sales.

During the first quarter, Chew said Dataprep secured RM65 million worth of contracts largely consisting of outsourcing projects.

He said most of the projects were for two-year periods and would only contribute to Dataprep’s earnings the following financial year.