News Release-- November 27, 2008

Automated Announces FY09 Interim Results -- Net Profit At HK$23.1 Million -- Overseas Business Revenue Leaps 60.2% To HK$91.2 Million

(Hong Kong, 27 November 2008) – Automated Systems Holdings Limited (“Automated” or “the Group”) (stock code: 771), a leading IT services provider in Hong Kong, announced its FY09 interim results for the six months ended 30 September 2008, with turnover amounting to HK$733.5 million, up by 10.0% compared with the corresponding period last year. Basic earnings per share were HK 7.8 cents (FY08 interim: HK 8.73 cents).

Profit before taxation for the first six months was HK$26.6 million, lower by HK$4.6 million when compared with the corresponding period in FY08. Net profit was HK$23.1 million which is HK$2.6 million less than the amount in the same period last year. The decrease was mainly attributed to the loss of dividend income after the full disposal of available-for-sale investments in FY08, and the loss incurred in a completed solution project that is of strategic importance to the Group. The drop in interest income because of decline in interest rate and high pricing pressure plus high inflationary cost also suppressed the Group’s profit in the second quarter of FY09.

As at 30 September 2008, the Group maintained a healthy balance sheet with no debt and approximately HK$272.6 million in net cash. The Group’s order book balance was approximately HK$580.0 million and its working capital ratio stood at 2.06:1. The Board of Directors declared an interim dividend payment of HK 4 cents per share for the six months ended 30 September 2008 (FY08 interim: HK 4 cents per share).

Mr. Lai Yam Ting, Managing Director of Automated, said, “With our solid foundations and proven track record, the Group maintained stable performance with profit amid the global financial crisis. During the period under review, IT infrastructure sales kept growing catering to the continued needs of clients to enhance or upgrade their IT systems. Solutions and managed services businesses also performed favourably. In addition, we also made significant progress in our overseas business in Macau, Taiwan and Thailand, contributing solid revenues to the Group.”

Product sales and service revenue for the first half of FY09 increased by 3.6% and 20.6% respectively, accounting for 58.8% and 41.2% of the Group’s total turnover. As for commercial and public sector sales for the first six months, they made up 58.3% and 41.7% of the total turnover respectively, against 58.7% and 41.3% last year.

        In the first six months of FY09, IT infrastructure business made solid progress with a balanced spread of business from different industries. Enterprises saw the need to enhance their IT systems to maintain service quality and operational efficiency. During the review period, the Group secured a sizable deal from an international bank in Hong Kong entailing provision of four enterprise servers to upgrade a mission-critical system of the bank. The Group also won a bid from a well known telecommunications services provider to supply nine IBM System p5 servers and storage management software for approximately 500 users.

        The Group’s solution business continued to record satisfactory results for the first half of FY09. In the public sector, it was awarded a contract from the Hong Kong Housing Authority to provide a Rent Enquiry Facility Kiosk solution that can allow public housing estate tenants to conveniently check rental payment balances at any estate office in Hong Kong. In the private sector, the Group won a multi-million dollar contract from a prestigious local financial institution to provide a human resources solution for 700 users. Fueled by the growing need of security enhancement for enterprises in Hong Kong and Macau, the Group obtained a number of security solution orders that leveraged advanced technologies from its close IT industry partners.

        Focusing on high-value business, the Group secured a number of sizable long-term maintenance and managed service deals, bringing in stable recurring revenue. During the review period, the Group was granted an additional contract by a government department to provide 2-year outsourcing maintenance support for its electronic document management system. This deal is evidence of the confidence the government department has in the services of the Group.

In the first half of FY09, overseas business of the Group continued to perform well. It made progress in many business areas and was successful in expanding its clientele. During the first six months of FY09, turnover from the business rose 60.2% when compared with the same period last year, contributing HK$91.2 million to the Group’s total turnover.

        In the PRC, the Group won a contract to provide its proven front office solution for a new hotel in Hangzhou. The Group’s subsidiary in Thailand won an over-a-million-dollar contract from the Community Development Department under the Ministry of Interior. ASL Thailand is responsible for supplying computer hardware and anti-virus software for all branches of the department in the country.

Apart from notable progress in performance, ASL Taiwan opened a new office in Taichung City on 10 November 2008 and expanded its talent pool to more than 40 staff to help the Group strengthen its foothold and coverage of the Taiwan market. The new office, located in the heart of the city, will enable the Group to better serve multinational and local clients in the central and southern Taiwan. Besides, it can accommodate customers’ demand for quality IT services and solutions while providing effective support to customers’ operations in different parts of the island.

Mr. Lai said, “Like other businesses in Hong Kong, the Group's performance is likely to be affected by the global financial crisis. We will continue to strive to control costs and make use of existing resources to create greater economies of scale, so as to maintain the Group’s leading position in the IT industry. We are also glad to report that subsequent to the review period, the Group has secured a number of sizable contracts in Hong Kong and overseas markets, which will translate into assured incomes.”

These contracts include a City of Dreams project of multi-million dollars to provide Baccarat Score Board System and Playing Card Management System in Macau, and an order for the provision of e-Procurement System to a government department.

Mr. Lai concluded, “Looking ahead, we will continue to focus on achieving customer service excellence. Leveraging the proven business acumen, we will maintain Hong Kong to be our centre of excellence, whereas aggressive efforts will be made to develop business in Taiwan and Mainland China. Taking into account the current generally sluggish market demand, the Group expects challenges for its business in the second half of the FY09. To improve competitiveness and boost revenue, it will keep enhancing the quality of its human capital by helping staff members strengthen their expertise.”

Related Documents

Chinese version, pdf file

Download the file