Wednesday, December 28, 2011

Nextnation 2Q net profit dips 50.3% to RM255k

KUALA LUMPUR (Dec 28): NEXTNATION COMMUNICATION BHD [] net profit for the second quarter ended Oct 31, 2011 fell 50.3% to RM255,000 from RM514,000 a year earlier, due mainly to lower gross margins being generated.

The company said on Wednesday that its revenue for the quarter fell 24.6% to RM14.87 million from RM19.74 million in 2010. Earnings per share were 0.08 sen compared to 0.04 sen a year earlier, while net assets per share was 16.91 sen.

For the six months ended Oct 31, Nextnation's net profit surged to RM3.63 million from RM623,000 in 2010.

Reviewing its performance, the company said the decrease in its revenue for the quarter was due to decline in sales for its products and services.

On its prospects, Nextnation said that moving forward its priority was to continue to penetrate into existing markets and to explore opportunities through development of new technologies, products and services.

As such, the company said it would continue to emphasise on investment in the area of research and development and development of new technologies in the platform and mobile content business.

'Furthermore, the group has also taken steps to implement stringent cost control in order to achieve greater operational efficiency and effectiveness.

'With all these strategies planned out and government's information and communication technologies-friendly policies, we are optimistic that the group is well-positioned for a steady growth performance in the coming financial year,' it said.

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