Silverlake Axis *Official* (SGX: 5CP)

havetheveryfun

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Added more at 565 and it immediately drops to 555 :s22:

Oh well, not too worried. Don't foresee an economic slowdown affecting their earnings.

think its going down because the banks are also going down ? cos their clients mostly banks ?
 

Weaboo

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will whack more if it drops to 50 sens
 

SeVenn

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think its going down because the banks are also going down ? cos their clients mostly banks ?

Doesn't really matter unless the banks collapse. IT services maintenance is not something that can be cut down on regardless of the economy. Banks are notoriously slow when it comes to changing IT systems so these contracts are secure for a looong time. Plus the Silverlake banking software is proprietary so it's not like they can just switch vendors.

Hope can break out from 0.6 :o
 

havetheveryfun

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Doesn't really matter unless the banks collapse. IT services maintenance is not something that can be cut down on regardless of the economy. Banks are notoriously slow when it comes to changing IT systems so these contracts are secure for a looong time. Plus the Silverlake banking software is proprietary so it's not like they can just switch vendors.

Hope can break out from 0.6 :o

yeap but facts don't matter, what the market thinks matter..

to the layman: banks go down, anything related with banks also go down. just like now o&g go down, banks also go down because people scared they cannot get back their money from the loans to them
 

Mancunian2

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what sort of software doe silver lake provides?
 

Mancunian2

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yup

since silver lake provides IT software and support to banks
banks are their direct customers and generate most of silver lake's revenues

banks are also squeeze masters
they expect more and more discount every year
 

Mancunian2

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usually when silver lakes sells the software/system, got tag long like 10 year maintenance contract

a lot of people like because of the recurring income from the long term contracts

however yeah banks are cutting costs heavily

every time contract up for renewal, banks will want to lower fees one,
not good for revenue growth prospects

I ever kena arrow go negotiate with vendors before
 

mrclubbie

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Silverlake Axis posts 7% fall in 2Q earnings to $22.4 million

Silverlake Axis posts 7% fall in 2Q earnings to $22.4 million

http://www.theedgemarkets.com/sg/article/silverlake-axis-posts-7-fall-2q-earnings-224-million

SINGAPORE (Feb 11): Silverlake Axis, the provider of software to the banking and finance industries, posted a 7% fall in 2Q earnings to RM66.6 million ($22.4 million) from a year ago.

The weaker bottomline was the result of a 61% decline in the share of profit of associates and a joint venture to RM 1.6 million and an increase in income tax expenses to RM 17 million.

Revenue for the three months to December rose 44% rise to RM179 million. Sales from maintenance and enhancement services grew 39% to RM92.7 million while sales from software project services more than doubled to RM 36.1 million. Software licensing sales fell 13% to RM28.9 million.

Driven by revenue growth, gross profit rose 27% to RM 104.4 million. However, gross profit margin was lower at 58% compared with 66% in the previous corresponding period.

The decline was mainly attributed to higher contribution from lower margin business activities, such as software project services and sale of hardware products, as well as the consolidation of the Symmetri Group.

A second interim dividend of 0.75 cent per share has been proposed.

The counter closed 1.75% lower at 56 cents on Thursday.
 

n1ef5ng

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:(, dunno why such a high expenses this time. But name me another coy that has silverlake kind of profit margin? Maybe they gonna push revenue up this time
profit drop... will it crash below 50 cts?
 

SeVenn

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No more share buybacks but price still up. Still very undervalued it seems :D
 
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