Revenue Performance - Revenue for the nine months ended February 28, 2023, was SGD 15,601,057, a decrease of 8.2% compared to SGD 18,096,096 for the same period in 2022[13]. - Revenue for Q3 2023 was SGD 7,761,962, an increase of 10.7% compared to SGD 7,008,376 in Q3 2022[15]. - Total revenue for the nine months ended February 28, 2023, was SGD 15,601,057, down from SGD 18,096,096 in the same period of 2022, indicating a decline of 8.2%[15]. - For the nine months ended February 28, 2023, total revenue from external customers was SGD 15,601,057, a decrease of 13.8% compared to SGD 18,096,096 for the same period in 2022[53]. - Simplicity® total revenue for the nine months ended February 28, 2023, was 14,702,333 SGD, a decrease of 15.7% compared to 17,437,013 SGD for the same period in 2022[74]. - Starlight® total revenue rose by 36.4% to 898,724 SGD, with project revenue increasing by 75.1% to 682,067 SGD[78][79]. Profitability and Loss - The company reported a pre-tax loss of SGD 768,235, primarily due to investments aimed at enhancing organizational capabilities, including expanded sales and marketing efforts[13]. - The company reported a profit before tax of SGD 1,827,762 for Q3 2023, compared to a profit of SGD 362,734 in Q3 2022[15]. - Total comprehensive loss for the nine months ended February 28, 2023, was SGD 800,234, compared to a profit of SGD 2,303,666 for the same period in 2022[15]. - The company recorded a pre-tax loss of SGD 768,235 for the nine months ended February 28, 2023, compared to a profit of SGD 2,311,398 in the previous year[93]. Gross Profit and Margins - Gross profit for the same period was SGD 7,419,663, slightly down from SGD 7,448,770, with an overall gross margin improvement attributed to increased recurring revenue from the Simplicity® segment[13]. - Gross profit for Q3 2023 was SGD 4,870,072, significantly higher than SGD 2,325,248 in Q3 2022, reflecting a gross margin improvement[15]. - The company experienced a 0.4% decrease in gross profit margin despite a slight decline in total gross profit, indicating improved operational efficiency[13]. - The overall gross margin for the group remained stable, with Simplicity® gross margin at 47.6%, up from 41.7% year-on-year[88]. Expenses and Costs - Total employee expenses for the nine months ended February 28, 2023, were SGD 3,336,258, up from SGD 2,160,181 in the previous year, indicating a significant increase of 54.3%[55]. - Sales and marketing expenses increased by 74.1%, amounting to SGD 843,055, driven by increased activities in local and new target markets in Australia[90]. - Administrative expenses rose by 34.2%, or SGD 1,125,733, primarily due to investments aimed at enhancing service delivery and increasing personnel costs[91]. - Financing costs increased to SGD 54,182 for the nine months ended February 28, 2023, compared to SGD 47,629 in the previous year, representing a rise of 13.0%[55]. Strategic Initiatives and Investments - The company continues to invest in strategic initiatives to drive growth and market expansion despite current financial challenges[13]. - The company plans to continue investing in R&D to enhance its software solutions and expand its market presence[15]. - The company is focusing on enhancing security governance and control measures to achieve SOC 2 compliance, alongside increased R&D efforts for the Simplicity® software product[13]. - The company is committed to enhancing its Simplicity® and Starlight® products by continuously adding new features and improving software frameworks[92]. Market and Customer Insights - The company noted that the overall economic slowdown impacted revenue from the Simplicity® business, but this was offset by increased demand for Starlight® energy-saving technologies[13]. - Major customer A's revenue dropped to SGD 2,316,096 for the nine months ended February 28, 2023, down from SGD 7,572,234 in the previous year, a decline of 69.5%[58]. - The company aims to expand its market presence across various sectors, including commercial real estate, education, healthcare, government, utilities, and oil and gas[70]. Dividends and Shareholder Returns - The board has not declared any dividends for the nine months ended February 28, 2023, consistent with the previous year[13]. - No dividends were declared for the nine months ending February 28, 2023, consistent with the previous year[106]. Accounting and Financial Reporting - The company reported a comprehensive financial statement for Q3 2023, detailing its control over subsidiaries and the accounting treatment of lease liabilities and right-of-use assets[28]. - The company recognizes contract balances related to ongoing system integration contracts under "contract assets" or "contract liabilities" in the financial position statement[38]. - The company confirms that there are no significant financing components in its revenue recognition processes[41].
安科系统(08353) - 2023 Q3 - 季度财报