CEO Morning Brief

IJN Terminates Information System Contract With Theta Edge

Publish date: Tue, 21 Mar 2023, 08:41 AM
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TheEdge CEO Morning Brief
IJN terminates information system contract with Theta Edge

KUALA LUMPUR (March 20): Theta Edge Bhd received a contract termination notice from Institut Jantung Negara Sdn Bhd (IJN) dated March 17, 2023.

According to a Bursa Malaysia filing on Monday (March 20), its wholly owned subsidiary Theta Technologies Sdn Bhd received the notice for the contract which IJN awarded on Feb 25, 2021.

Theta Edge is consulting its advisers on the termination and is assessing the materiality of the financial impact, it said.

The contract entails the supply, conducting requirement study, design, developing/customising, configuring, integration, data migration, installation, testing, training, support and maintenance of the hospital information system and electronic medical record for IJN.

On March 6, the information and computer technology service provider participated in a request for proposal (RFP) issued by the Minister of Finance Inc to acquire a 70% stake in Transit Acquirer Sdn Bhd.

Theta Edge, which is 30% owned by Lembaga Tabung Haji, however said it “has not entered into any definitive agreement” for the acquisition.

The company confirmed its participation in the RFP dated Jan 5, 2022 in its filing on Monday, “upon due inquiry with its board of directors, its substantial shareholders, and all such persons reasonably familiar with the matter”.

The group’s earnings returned to the black in the fourth quarter ended Dec 31, 2022 (4QFY2022) with a net profit of RM489,000, from a net loss of RM3.94 million in the same quarter a year earlier.

Its earnings per share was 0.41 sen from a loss per share of 3.67 sen.

Quarterly revenue, however, fell slightly to RM28.62 million in 4QFY2022 versus RM28.77 million in 4QFY2021 due to the absence of one-off trading from the supply of binoculars and computer equipment, offset by new projects secured by its information technology and telco services segments.

For FY2022, its net profit stood at RM8.07 million from a loss of RM4.8 million in FY2021, on the back of lower revenue to RM97.12 million from RM144.14 million a year earlier.

Under its transformation programme, the group will continue its strategic initiatives, which include group-wide cost optimisation, strategic partnerships for the acquisition of new competencies, strategic supply chain management and rollout of best practices for operational policies and procedures to strengthen corporate governance, said Theta Edge on its prospects.

Theta Edge shares closed 1.5 sen or 2.19% lower at 67 sen, giving a market capitalisation of RM78.47 million.

Source: TheEdge - 21 Mar 2023

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