KUALA LUMPUR (Nov 7): Software company Microlink Solutions Bhd (KL:MICROLN) on Thursday said it has secured a RM83.51 million contract from the Ministry of Home Affairs (KDN) to develop and supply an advanced passenger screening system for the Immigration Department.

The Main Market-listed company, whose share price has fallen 84% year-to-date, said the two-year contract was awarded to its wholly owned unit Microlink Systems Sdn Bhd (MSSB).

“The project is subject to a formal agreement to be entered into between KDN and MSSB,” Microlink said in an exchange filing.

The project, it said, is expected to contribute positively to the company’s revenue, earnings and net assets for the financial year ending March 31, 2025.

Microlink's largest shareholders are Omesti Bhd (KL:OMESTI), which owns a 34.3% stake in the company, and Kenanga Islamic Absolute Return Fund, which has a 22.1% stake. The Sultan of Pahang, Al-Sultan Abdullah Sultan Ahmad Shah, owns a 9.9% indirect stake in Microlink via Gading Sari Ventures Sdn Bhd.

Microlink has been in the red for three consecutive quarters. It posted a net loss of RM4.44 million for the three months ended June 30, 2024 (1QFY2025) versus a net profit of RM3.71 million a year earlier, due to lower margins from the order fulfilments and progress billings.

Revenue for the quarter, meanwhile, rose 8.03% to RM61.51 million from RM56.93 million in 1QFY2024, thanks to higher order fulfilments and progress billings, particularly in the distribution and financial services segment.

Shares of Microlink settled down one sen or 6.67% to 14 sen on Thursday, giving the company a market capitalisation of RM150.14 million.

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