Stratech Delivers Another Year Of Profits
SINGAPORE, 30 May 2010 – Singapore Exchange Mainboard-listed Stratech Systems Limited (“Stratech” or “the Group”) today announced a net profit of S$1.2 million on a revenue of S$13.9 million for the financial year ended 31 March 2010 ("FY2010") comparable to that of S$1.2 million on a revenue of S$15.2 million for the previous financial year ("FY2009").
The Group registered a gross profit of S$11.2 million, a 12 percent growth from the S$10.0 million recorded for FY2009.
New business in FY2010 accounted for S$3.8 million (FY2009: S$7.3 million) whilst existing contracts contributed S$10.1 million (FY2009: S$7.9 million) to the revenue. International sales contributed 32 percent (FY2009: 35 percent) of total revenue.
Salaries and related costs decreased from S$5.6 million to S$4.6 million, that is, by 17 percent compared to FY2009 on account of lower headcount and higher product development efforts. Other operating expenses decreased by 21 percent from S$5.0 million to S$3.9 million.
Net cash flow from operating activities contributed S$4.1 million to the Group's cash and bank balances in FY2010 compared to S$0.1 million used in operating activities in FY2009.
The significant events during the year include:
- iFerret™, Stratech's intelligent Airfield/Runway Surveillance and FOD (Foreign Object and Debris) Detection System, was commissioned at Singapore Changi Airport.
- Stratech secured a sub-contract to design, co-develop and implement a TV Ordnance Scoring System (TOSS) for the Republic of Korea Air Force (ROKAF). TOSS will be powered by Stratech's state-of-the-art Super BullsEye® II Advanced Weapons Scoring System and is to be integrated with an Electronic Warfare Training System (EWTS) to be delivered to ROKAF.
- Stratech received a purchase order for the deployment of iFerret™ at an airport in Europe.
- Stratech was awarded a contract by the Maritime and Port Authority (MPA) of Singapore to design, implement and maintain the next-generation Shipmast Height Detection System (SHDS).
- Stratech formed a strategic alliance with Itochu Singapore Pte. Ltd. to market iFerret™ in Japan.
- Stratech signed an agreement to form a Joint Venture with Aeronautics Ltd. to target the Unmanned Aerial Vehicles (UAV) market in the Asia Pacific.
- iFerret™ won the Innovation Award at the ATC Global 2010 held in Amsterdam.
The Group's order book as at 31 March 2010 stood at S$37.9 million (including operation and maintenance options of up to 10 years) of which approximately S$22.3 million is expected to be delivered over the next five years.
The Group remains committed to continue to find ways of unlocking the full potential and value of its intellectual properties. Barring unforeseen circumstances, the Group is cautiously optimistic of its performance for the next financial year.
About Stratech Systems Limited (“Stratech”)
Stratech Systems Limited ("Stratech") was listed on the mainboard of the Singapore
Exchange in 2000. It is principally engaged in the design, development, integration,
implementation, maintenance and project management of information technology
and advanced technology systems. The Group delivers large-scale complex, real-time, mission-critical systems in the areas of intelligent Vision, intelligent Transport
Systems and e-Systems for governments and businesses.
Founded in 1989, the Group has established an impressive track record serving industries such as aerospace and defence, financial services, government, healthcare, homeland security and transportation (air, sea and land). The Group develops and implements advanced technology solutions that achieve significant business transformation and competitive advantage for its clients.
For more information, please visit www.stratechsystems.com
Stratech Systems Limited
Coreen Kuo (Ms)
DID: (65) 6799-6650