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Media Release
The Group’s core business strategy continues to pay off amidst continuing impact from
the global credit crunch and uncertain economic conditions. Primary growth engine,
Digital Media group delivered a strong 43.7% yoy jump in revenue to US$17.4 million,
reflecting the increasing deployment of its digital media solution and multi-media
software. Concurrently, revenue from infrastructure enabling group grew by 13.3% to
US$31.4 million; addressing 5 quarters of negative growth.
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DMX TECHNOLOGIES GROUP LIMITED
preceding 1Q09 and 26.56% in 2Q08. The Group’s gross profit rose by a modest 3% to
$10.9 million.
The Group continued to exercise control over operating expenses in 2Q09. Total
operating expenses decreased by a net US$0.2 million to US$5.5 million. A US$0.3
million increase in foreign exchange gain coupled with US$0.1 million decrease in
general administrative expenses offset the US$0.3 million increase in depreciation
expenses. Other operating expenses, e.g. amortization of intangible assets, were
maintained at US$3.0 million.
In light of the above, the Group’s profit after tax increased 11.4% to US$1.9 million in
2Q09 from US$1.7 million in 2Q08. This represents a sequential growth of 122.4% from
1Q09’s US$0.9 million.
Commenting on DMX’s performance, CEO, Ms. Jismyl Teo, “We are pleased to have
achieved a delicate balance in managing our business through an economically
challenging half year. In the last quarter, we made a few marginal sacrifices in gross
margins; but continue to protect our net profitability. We have also improved our cash
flow from operating activities through better collections and management of payables.”
As at 30 June 09, trade receivables improved to US$125.2 million; US$1.0 million lower
than 31 Mar 09. The Group also generated US$5.6 million in cash from operating
activities compared to US$1.0 million in 1Q09 and US$1.9 million in 2Q08.
“The good news is that there are indications of a return to stability after the drastic
economic downturn over the last few quarters. Telecom operators and enterprises are
now more willing to resume capex spending. Most importantly, confidence has been
restored within our core China market, based on its strong 7.9% estimate of GDP growth
for 2Q09 underpinned by the Chinese government’s stimulus package with an emphasis
on infrastructure building,” added Ms. Teo.
“Going forward, we will continue to build on the opportunities we see in the Digital Media
market and capitalise on higher value-add solution and services within the Infrastructure
Enabling group,” concluded Ms. Teo.
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This press release is to be read in conjunction with the Company’s exchange filing of 2Q09
results announcement, which can be downloaded from www.sgx.com via listed company
announcements.
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DMX TECHNOLOGIES GROUP LIMITED