Press Releases

February 14, 2007

eBworx Berhad More than Doubles Profits

Leading Local Banking Solutions Provider Re-charts Course for Revenue Growth in 2007

Kuala Lumpur, 14 February 2007 - MESDAQ-listed eBworx Berhad (‘EBWORX’) today reported an impressive growth in net profit after tax by 138 per cent to RM7.38 million in financial year 2006 (FY2006), from just RM3.1 million in FY2005.

This was despite reporting a decrease of 7.6 per cent in consolidated revenues of some RM33.8 million in FY2006, as compared to RM36.6 million recorded in the previous corresponding year.

According to eBworx chief executive officer Tan Suan Fong, the company intentionally planned to maintain its revenue at a flat for the year 2005 and 2006, in order to refocus on improving its delivery capability via quality training and process enforcement.

Tan says, “Our key intentions over the last two years were to emphasize on improving operational efficiencies, putting concerted effort to hitch more profitable projects and to successfully deliver several existing projects.

The strategy has paid off well and now that we have successfully accomplished our objectives, we are back to focusing on growing our bottom line.

For 2007, we target a revenue growth of at least 20 per cent – of which this top line will be the basis for a targeted increase in bottom line by some 40 per cent at the end of the current financial year.”

Moving Forward in 2007

eBworx is in the niche business of providing IT solutions for the banking sector, and Tan is confident that the company will exceed last year’s performance for two key reasons:-

“First is the Basel II mandate by Bank Negara for banks to compute their capital adequacy ratio under the Basel II Standardised Approach (for non-Islamic banks) and the Capital Adequacy Standard (for Islamic institutions) by end of 2008.

The need to implement Basel II principles – which is intended to elevate the way that credit risk is managed today - creates an urgent need for banking solutions such as eBworx credit management and collection / recovery software.”

The second factor supporting eBworx optimistic outlook for 2007 is that its investment to develop a new trade finance solution suite TradeSpring in 2005, has started to bear fruit with its purchase by two local commercial banks.

“We definitely expect greater response to our TradeSpring’ suite, especially word goes around the banking fraternity as to the cost-value that our trade solution provides as compared to other foreign brands,” he says.

Among the eBworx four channels of business revenues (i.e. License and New Projects; Enhancement Services; IT Managed Services; and Application Support/Maintenance Services), Tan said that enhancement services is expected to contribute to an approximate 40 per cent of the bulk of the company’s revenue in 2007.

As a whole, the eBworx Group experienced a significant organizational expansion from year 2000 to 2005, with growths in revenues (i.e. RM6 million to over RM30 million), staff size (i.e. from 50 to more than 300 head count) and regional presence.