eBworx achieves 31% revenue growth for Q307

New deals expected to contribute to strong 2007 finish for Group

More about eBworx.

Press Release:

PETALING JAYA – Nov 1, 2007 – eBworx Berhad (‘EBWORX’) today announces its results for the third quarter of financial year 2007 (Q3FY07), which ended on 30 Sept 2007.

For the period of Q3FY07, the Group achieved revenue of RM10.1 million, marking a 21.6 per cent jump from RM8.3 million recorded in the last corresponding quarter.

At the back of this revenue performance is a 63 per cent increase in profit before tax (PBT) at RM3.1 million from RM1.9 million as recorded in the last corresponding quarter.

Over the cumulative period of nine (9) months, the Group recorded a revenue growth of 31 percent at RM32 million, as compared to RM24.4 million over the last corresponding period.

From this cumulative revenue, the Group’s cumulative profit before tax (PBT) is at RM8.9 million, which is a 56 % increase from RM5.7 million as recorded over the same corresponding period.

Chief Executive Officer Tan Suan Fong attributes eBworx’s strong performance to two factors, “The improvements we see this quarter is mainly due to the Group’s increased revenues and improved operational efficiency.”

New wins

Whilst new customer wins are essential to part of eBworx’s increased revenues, the Group has made clear since early 2007 that it is part of its strategy to grow its recurring business with its ‘S2 -Software and Services’ vision.

Tan shares that over third quarter of 2007, eBworx has managed to further strengthen its recurring income stream. “New deals are not only important to continuously grow and maintain revenue, but also because it reflects our customers’ confidence in our strong track record of good delivery and value service,” he says.

eBworx currently has more than 30 banks from around the region in its client portfolio. The bulk of these customers are made up of mostly Tier-1 and Tier-2 customers from the bank sector, that also contribute to the Group’s recurring income.

Tan adds, “The banking software sector that eBworx plays in will only continue to experience greater demand trends fueled by industrial trends such as Basel II that is sweeping the region with top-down compliance instructions by central banks; and banks’ focus to revamp electronic banking channels such as Internet banking, mobile banking and cash management.”

eBworx is the acknowledged market leader in Credit Management Software, but is actively marketing its new Trade Finance solution which allows banks to benefit from the fastest time-to-market cycle for trade product configurations.

“For the next quarter, we are confident of being to share more news of even more success as strong demand for eBworx banking solutions comes from both within the country and from around the region, and the management does not waver in its relentless focus on healthy project margin.”

About eBworx

MSC-status eBworx is a home-grown regional financial solutions specialist, providing a wide array of innovative digital commerce solutions to the financial services industry which include software products, technology consulting and systems integration services that enable financial institutions to improve their sales operational efficiency and manage credit risk.

The eBworx Group has five wholly-owned subsidiaries – Digital Nervous Systems Sdn Bhd, eBworx International Pte Ltd, eBworx Technology (Chengdu) Co Ltd, eBworx Technology (Beijing) Co Ltd and eBworx (Indo-China) Co Ltd. The principal activity of all four companies is the provision of computer software applications and dealing in computer software and hardware for the financial services industry.

In 2001 and 2004, IDC Market Research (M) Sdn Bhd awarded the eBworx Group as a “Local Software Hero in Malaysia” as recognition for its position as a significant software company in Malaysia. eBworx clientele includes RHB Bank Berhad, AmBank Group, Alliance Bank Malaysia Berhad, Al Rahji Bank, OCBC Bank, EON Bank Group, UOB Group, PT Bank Central Asia (Indonesia) PT Bank Internasional Indonesia, Krung Thai Bank, KASIKORNBANK, Capital OK Company Limited, PT Bank Lippo, PT Bank Danamon, among others.

Institutional Investors

eBworx institutional investors include OSK Venture Equities Sdn Bhd, a venture capital company of OSK Ventures International Berhad and CSE-Infotech Limited, a wholly-owned subsidiary of CSE Global Limited, which is listed on the Main Board of the Singapore Exchange.

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