Geen Packet is sitting on a comfortable net cash hoard of RM102.5 million as of the third quarter of 2010 following the conclusion of SK Telecom's US$100 million injection into Packet One.

'This could come in handy for its capital expenditure target of RM500 million over the next two years,' OSK Research said in its equity research report today.

The research house also said Green Packet's third quarter EBITDA (earnings before interest, taxes, depreciation and amortization) loss of RM12.9 million beat its quarterly forecast by 12.9 per cent on better-than-expected solution sales as the company secured more licensing deals for software provision services.

However, the revenue of RM100.9 million fell short of expectations by 5.6 per cent due to lower contribution from modem sales on revised pricing at US$75/unit, partly offset by higher volume as supply normalizes on timely deliveries, it said.
-- Bernama