Supercomnet Technologies Bhd delivered a 30.89% jump in net profit to RM33mil for its full year ended Dec 31, 2022, from RM25.21mil previously. Revenue increased 10.24% to RM158.33mil for the full year. The record full-year profits were due to growing momentum from existing customers besides maiden contributions from new customers.
For the fourth quarter to Dec 31, 2022, net profit however dropped 23.11% to RM6.09mil while revenue declined 9.3% to RM37.35mil. The lower profits were due to delays from a supplier, inventory adjustment from one of its customers, and an unfavourable foreign exchange rate.
For the issue with the supplier, Scomnet said it was not able to begin manufacturing one of its new products from its latest client, simply because it received defective products from its FDA-approved supplier. The principal for this new product has urgently stepped in, as it looks to resolve this issue with the supplier, by the second quarter. Scomnet has also proactively been in talks with another FDA-compliant supplier to fulfil this required product.
Secondly, there was a post-Covid inventory adjustment by one of Scomnet’s main customer for the Endoscopy Video Cables product that was used in the treatment of Covid.
Despite a weaker fourth quarter result, Scomnet still managed to deliver record full-year profits and revenues. This trend is expected to continue organically, which is just based on its existing orders and product pipeline.
As of the period, the company has highly liquid assets totalling RM162.77mil. This comprises of cash and bank balances of RM19.3mil, term deposits of RM16.55mil, and other financial assets worth RM126.92mil that are mainly represented by investment in money market.
