May 10, 2007
Subang Jaya, 10 May 2007 - Financial solutions specialist eBworx Berhad is targeting a 25% to 30% growth in revenue this year backed by an increasing demand for credit management systems from local and foreign banks in the country and the region.
Its chief executive officer Tan Suan Fong said with the Basel II compliance requirement adopted by most central banks, many financial institutions were revamping their electronic banking channels via the Internet and mobile phones, as well as cash management system.
In line with the increase in demand from the banking sector, the company is also targeting to increase its order book by between RM10 million and RM15 million every quarter, he said.
“Most banks, especially foreign-owned ones, are increasingly looking at providing electronic channels to serve customers. In line with this, local banks are also increasing such services to remain competitive,” he said after eBworx AGM in Subang on May 10.
Tan said the current trend of banks upgrading their IT solutions and software enhancement would keep the company busy in 2007 and 2008.
He said eBworx secured RM9.1 million worth of software enhancement contracts in the first quarter of 2007. Tan said that could increase to between RM10 million and RM15 million in the second half of the year.
“We are focussing on high-margin revenue such as software enhancement and maintenance services. Our other focus is to build new lines of businesses that generate recurring income such as IT insource or outsource management services,” he said.
Tan said 83% of its revenue in 2006 came through recurring income from its existing customers. It has 30 clients across the region including in Malaysia, Singapore, Thailand, China, Indonesia, Hong Kong and the Philippines.
On its outlook, Tan said the company was targeting to secure more contracts in Malaysia and Singapore, especially for outsourced management services as banks in the two countries sought to reduce costs.
He said the company was also bidding for several contracts in Vietnam as part of its expansion plans. Tan expects the outcome of the bids to be known in about three months.
Source: Adopted from TheEdgeDaily
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