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May 27, 2021

This Counter Breaks 6 Years Record

 Shares of Privasia Technology Bhd jumped 9 sen or 34.62% to 35 sen during this morning's trading session, marking the highest level in 6 years.

The increase came after the company recorded a profit in the first quarter ended March 31, 2021 (1QFY21) of RM283,000 compared to a loss of RM747,000 in the same period last year.

At 11.40am, the ACE Market -listed company hit 33 sen, up 7 sen or 26.92%.

The company, which is also the most actively traded counter this morning, saw 466.08 million shares change hands, 30 times its 200 -day trading average of 14.99 million shares.

Privacy has recorded losses since 1QFY19.

According to the company's notification to the exchange on Tuesday, Privasia said the profit recorded in 1QFY21 was due to the readjustment of its client portfolio.

The company's quarterly revenue, however, declined by 5.5% to RM8.98 million from RM9.51 million last year, due to lower revenue in all segments.

The company added that its information technology division recorded revenue of RM7.3 million compared to RM7.8 million in 1QFY20. Privasia also recorded an operating loss of RM40,000 compared to an operating profit of RM900,000 at 1QFY20 due to lower margins.

Meanwhile, the information and communication technology division also recorded revenue of RM1.2 million compared to RM1.6 million in 1QFY20. The division reported a lower operating loss of RM300,000 compared to RM400,000 that occurred in 1QFY20 due to the implementation of cost -saving initiatives by Privasia.

Its satellite -based services division recorded revenue of RM600,000 compared to RM700,000 in 1QFY20. The division reported an increase in operating profit of RM1 million compared to an operating loss of RM600,000 in 1QFY20, mainly due to the sale of its client contract portfolio.

Going forward, the company says it will continue to meet its booking value, with a current balance of around RM31 million.

"The company will also examine every opportunity in the technology space to improve performance and business prospects in the future," he said.