Silverlake Axis

Silverlake Axis: 3QFY14 net profit accelerated 33% to RM62.9m, as revenue raced 25% to RM136m, mainly driven by two large sale of hardware products and new contribution from insurance processing contributed by Merimen Group. Meanwhile, the higher contribution from software licensing and maintenance and enhancement services was partially offset by fewer project implementation contracts under its software project services segment. Gross margin slipped 5ppts to 58% on the change in product mix towards sale of software and hardware products, as well as a dip in margin from software project services. For 9MFY14, earnings of RM174.6m (+28%) and revenue RM362.8m (+26%) are in line with consensus full year estimates. Silverlake declared its third interim dividend of US$0.02/share.