By KEVIN WONG / Pic By ISMAIL CHE RUS
Privasia Technology Bhd is looking to return to the black by the end of this financial year, following its losses in the financial year 2017 (FY17).
The information technology (IT) outsourcing firm suffered RM7.2 million losses due to the fluctuation of the foreign-exchange (forex) market, which heavily impacted its satellite business.
Additionally, Privasia’s revenue dipped due to the firm’s decision to move away from its system integration (SI) offerings and engagements.
Privasia CEO and MD Puvanesan Subenthiran (picture) said the decision to move away from the SI engagement was due to the firm’s new and upcoming product.
“At the end of 2016, we needed to differentiate as SI was getting more competitive, making it harder to expand, especially for geographical expansion.
“With that said, we decided the most efficient way is to grow our products as they are our intellectual property (IP) and that is what set us apart from the rest,” he told reporters after the firm’s AGM in Petaling Jaya last Friday.
Commenting on its losses in FY17, he said it was due to the fluctuating forex market which impacted Privasia’s satellite as the firm had to realign its customers’ profiles.
“Due to that, we had to introduce new packages, as well as a one-off write down of RM500,000 from our accounts,” he said.
“However, I cannot say the fluctuation is based on the US dollar as we do buy other things from different places.
But, when there is a general fluctuation, we will be certainly affected,” he said.
In efforts to be profitable this year, Privasia will be expanding its range of products and services, including fast-tracking IP products growth and information and communication technology (ICT) scope and services.
“At the same time, we will be optimising our satellite-based services as we see it turning around, and it is a strategic business as we have a high customer retention over the years.
“We will also be expanding our ICT services, especially with the telecommunications companies as we are now directly engaging with them,” he said.
Privasia has an orderbook of RM83 million in which Puvanesan said would ensure the firm’s job continuity until 2021.
“We have enormous desire to expand in the coming years and we are taking the necessary steps to realise this vision.
“Additionally, we have yet to enter any tenders as we are focused on selling our products as utilities. However, we will tender if the project is strategic for us,” he added.
Privasia recorded a net loss of RM1.74 million in the first quarter ended on March 31, 2018 (1Q18), a decline of a net loss of RM810,019 compared to a net loss of RM2.55 million in 4Q17.