KUALA LUMPUR: OpenSys (M) Bhd's net profit increased 41.2 per cent to RM3.07 million in the third quarter (Q3) ended September 30, 2020 from RM2.17 million recorded in the same quarter last year.
In a statement today, the solutions provider for the financial services, telecommunications and utilities industries said this was due to the continued hardware and software solutions' delivery mainly to its banking customers.
Its revenue in the Q3 increased 11.6 per cent to RM23.89 million from RM21.41 million.
OpeSys chief executive officer Eric Lim Swee Keah said charting all-round financial outperformance despite the challenging economic landscape spoke volumes of the sustainability of the company's business model.
"This is largely hinged on our strong recurring income stream from the solutions and services segment, as well as our support for essential services of financial institutions, telecommunications and utilities players."
Lim said the company had not witnessed any significant disruptions to its operations from the implementation of conditional Movement Control Order (MCO) since mid-October.
"We will endeavour to remain on track in supporting customers while being cognisant of the Covid-19 impact on customers' operations.
"Barring unforeseen circumstances, we hope to register satisfactory performance in the financial year ending December 31, 2020," he said.
For the nine-month period, OpenSys' net profit increased 21.4 per cent to RM7.31 million from RM6.02 million, while revenue edged up 2.4 per cent to RM61.18 million from RM62.71 million.
Along with the commendable financial performance, the company declared a fourth interim dividend of 0.25 sen per share in respect of financial year 2020.
Together with the first, second and third interim dividends of 0.5 sen, 0.25 sen and 0.25 sen respectively, total dividend payout would amount to RM4.1 million or 56 per cent of nine-month financial year 2020's net profit.
Lim said the company was optimistic that banks would replace the traditional automated teller machines (ATM) and cash deposit machines with cash recycling machines (CRM) units, which are able to accept and dispense cash.
This will allow banks to enhance efficiency and level of service for customers due to the automatic cash replenishment cycle.
He said only about 30 per cent of cash machines currently deployed among the financial institutions were CRMs, leaving plenty of growth opportunities for the company due to its 80 per cent market leadership position.
"At the same time, we are hopeful that our end-to-end online solar market platform buySolar, which has been picking up traction with service providers, will start to contribute to our topline in the near term," he said.