Singapore, 12 November, 2014 - ECS Holdings Limited (“ECS” or the “Group”) announced today its net profit increased to $9.7 million for the three months ended 30 September 2014 from S$8.7 million a year ago as a result of the Group’s increased focus in higher-margin Enterprise Systems.
Gross profit grew 9.7% to S$41.9 million for the three months ended 30 September 2014 (three months ended 30 September 2013: S$38.2 million). Gross profit margin for the three months ended 30 September 2014 declined marginally to 3.7% from 3.8% last year due to competition - mainly for servers and enterprise software products - from Enterprise Systems sales in North Asia.
The Group recorded a net profit of $9.7 million for the three months ended 30 September 2014, an increase from $8.7 million a year ago. Net profit margin remained consistent across the comparative quarters at 0.9%.
Earnings per share for the three months ended 30 September 2014 was at 2.62 cents (three months ended 30 September 2013: 2.37 cents) and Net Asset Value per share was at 105.95 cents as at 30 September 2014 (as at 31 December 2013: 101.59 cents).
Mr. Ong Wei Hiam, Group Chief Executive Officer, said, “Worldwide IT spending continues to grow on the back of increased investments in technology in the consumer and enterprise segments. This would fuel demand for smartphones as well as enterprise products, which the Group is focusing on.”
Mr. Tay Eng Hoe, Group Executive Chairman, said, “Our efforts to concentrate on higher-margin Enterprise Systems segment are paying off and we remain committed to drive further growth in this segment to enhance shareholder value. “
The Group’s Enterprise segment, which offers higher margins, is expected to continue to grow.
Barring any unforeseen circumstances, the Board of Directors is cautiously optimistic about the Group’s financial performance in the fourth quarter of 2014 and the full financial year ending 31 December 2014.
Singapore, 11 August, 2014 - Singapore Exchange Mainboard-listed ECS Holdings Limited (“ECS” or “the Group”) announced today a net profit of $9.4 million for the three months ended 30 June, 2014, an increase from S$9.0 million a year ago, propelled by stronger contributions from higher-margin Enterprise Systems.
The leading provider of Information and Communications Technology (“ICT”) products and services said revenue for the three months ended 30 June, 2014 was $1.02 billion (three months ended 30 June, 2013: $1.02 billion).
Revenue for the Enterprise Systems and IT Services segments rose by 47.1% to S$420.2 million and by 18.6% to $9.9 million, respectively. Enterprise Systems’ contribution to Group’s revenue rose to 41.1% from 28.1% over the comparative period. The stronger performance of both segments mitigated the 18.2% decline in revenue for the Distribution segment to $591.6 million over the comparative period.
Gross profit grew 10.8% to $40.8 million for the three months ended 30 June, 2014 (three months ended 30 June, 2013: $36.8 million). Gross profit margin for the three months ended 30 June, 2014 increased to 4.0% from 3.6% previously due to higher Enterprise Systems sales in North Asia as well as better margins achieved by networking hardware and enterprise storage products.
The Group’s net profit margin was 0.9% of revenue for the three months ended 30 June, 2014, consistent with the comparative quarter.
Earnings per share for the three months ended 30 June, 2014 was at 2.54 cents (three months ended 30 June, 2013: 2.45 cents) and Net Asset Value per share was at 101.91 cents as at 30 June, 2014 (as at 31 December, 2013: 101.59 cents).
Mr. Ong Wei Hiam, Group Chief Executive Officer, said, “IT spending is expected to grow across all major segments for the rest of 2014, with the strongest growth set to come from Enterprise business. The Group will put in more effort to drive the higher-margin Enterprise business in all countries where we have a presence.”
Mr. Tay Eng Hoe, Group Executive Chairman, said, “We remain committed to building our capabilities as a leading regional IT distributor and to remain the preferred supplier. We will continue efforts to emphasize higher-margin businesses while striving to improve internal efficiencies.”
Barring any unforeseen circumstances, the Board of Directors is cautiously optimistic about the Group’s financial performance in the third quarter of 2014 and FY2014.
As Gross Margins Improve On Stronger Contributions From Enterprise Systems Segment
Singapore, 14 May, 2014 - Singapore Exchange Mainboard-listed ECS Holdings Limited (“ECS” or the “Group”) announced today that it recorded a net profit of $7.2 million for the three months ended 31 March, 2014 with a gross profit margin of 4.1% on strong growth of its Enterprise Systems segment.
The leading regional Info-Comm Technology (“ICT”) solutions provider representing best-of-class global brand names said revenue for the three months ended 31 March, 2014 was $930.9 million with gross profit of $38.5 million. The stronger gross profit margin was due to the change in revenue mix as the Group strengthened its higher-margin Enterprise Systems segment which accounted for 37.8% (three months ended 31 March, 2013: 23.6%) of its total revenue as Enterprise Systems’ contributions from North Asia augmented and margin contributions for networking hardware improved.
The Group’s net profit for the three months ended 31 March, 2014 was $7.2 million with net profit margin remains unchanged at 0.8% for both quarters.
Earnings per shareg (“EPS”) for the three months ended 31 March, 2014 was at 1.96 cents (three months ended 31 March, 2013: 2.26 cents) and net asset value (“NAV”) per share was at 101.85 cents as at 31 March, 2014 (as at 31 December, 2013: 101.59 cents).
Mr. Ong Wei Hiam, Group Chief Executive Officer, said, “The Group will continue to focus on the higher margin Enterprise Systems segment and to build on strong customer relationships to ensure that it remains the preferred supplier of choice for various products and services.”
Mr. Tay Eng Hoe, Group Executive Chairman, said, “The outlook on IT spending is expected to continue to grow as consumers and enterprises increase their spending on IT products and infrastructures. ECS is determined to capitalise on this.”
Barring any unforeseen circumstances, the Board of Directors is cautiously optimistic about the Group’s financial performance in the second quarter of 2014 and FY2014.
Announcement Title: General Announcement
Announcement Subtitle: Announcement of Change of Company Secretary
Securities: ECS HOLDINGS LIMITED (ECS)
Date & Time of Broadcast:Mar 31, 2014 17:42
Submitted By: ECS Holdings Limited, Mr Ong Wei Hiam, Group Chief Executive Officer
Effective Date and Time: Mar 31, 2014 17:00
Description: The Board of Directors of ECS Holdings Limited (“the Company”) wishes to announce that Mr Eddie Foo Toon Ee has resigned as Company Secretary with effect from 31 March 2014. The Board of the Company also wishes to announce that Ms Lim Yok Yen has been appointed as Company Secretary with effect from 1 April 2014.
Singapore, 26 February 2014 - Singapore Exchange Mainboard-listed ECS Holdings Limited (“ECS” or the “Group) announced today that its net profit for the financial year ended 31 December, 2013 (“FY2013”) grew by 16.1% to $34.4 million, outpacing a 15.3% growth in revenue which hit $4.20 billion, the highest in the Company’s history.
The leading regional Info-Comm Technology (“ICT”) solutions provider representing best-of-class global brand names said FY2013 revenue rose by $0.56 billion from $3.64 billion, propelled by higher contributions from both South East (“SE”) Asia and North Asia. This resulted in a $4.8 million increase in FY2013 net profit from $29.6 million in FY2012.
Geographically, SE Asia recorded 15.9% growth in revenue in FY2013 to $1.69 billion from $1.46 billion in FY2012, driven by higher sales of consumer storage, mobility devices, networking hardware and desktop PCs.
North Asia also achieved 14.9% growth in revenue in FY2013 of $2.51 billion as compared to $2.18 billion a year ago. This was mainly due to increased sales of servers, mobility devices, networking hardware, and software products.
The Group’s revenue for the fourth quarter ended 31 December, 2013 (“4Q13”) increased 7.1% to $1.09 billion from $1.02 billion in 4Q12, mainly due to the 15.8% improvement from North Asia.
The Group’s gross profit margin improved to 3.8% for 4Q13 compared to 3.4% for 4Q12, mainly due to higher contribution from higher margin enterprise systems products, especially for networking hardware and enterprise storage. This resulted in a 19.3% surge in gross profit to $41.7 million from $35.0 million, over the comparative period.
Total operating expenses were 17.9% higher in 4Q13 compared to 4Q12 mainly as a result of higher provisions made for doubtful debts in 4Q13.
Net profit in 4Q13 surged 19.7% to $8.5 million from $7.1 million in 4Q12, in tandem with the growth in revenue and gross profit margin. Additionally, 4Q13 net profit was improved by the lower finance costs by 6.4% to $2.3 million despite increase in revenue.
The Group generated a positive operating cash flow of $25.6 million for 4Q13 contributing to the $18.9 million for FY2013, a reversal of the negative operating cash flow of $14.2 million recorded in FY2012.
Cash and bank balances and bank borrowings stood at $120.9 million and $259.2 million, respectively, while net gearing improved to 0.37 times as at 31 December, 2013 compared to 0.40 times a year earlier.
Earnings per share improved to 9.41 cents in FY2013 from 8.10 cents in FY2012 while net asset value per share increased to 101.59 cents as at 31 December, 2013 from 92.83 cents a year earlier.
ECS has proposed a first and final dividend of 2.2 cents per share for the third consecutive year, representing 23.4% of the profit attributable to shareholders.
Mr. Ong Wei Hiam, Group Chief Executive Officer, said, “In passing the $4 billion annual revenue mark, ECS has crossed a significant milestone just four years after we hit $3 billion sales in FY2009. More importantly, our net profit outpaced revenue growth in FY2013, underscoring our relentless efforts to expand markets and product portfolio, while driving higher internal efficiencies.
Mr. Tay Eng Hoe, Group Executive Chairman, said, “The global technology landscape is accelerating its shift towards mobile devices and cloud-based services. ECS is determined to stay ahead of the game in this new IT era by investing more resources in these sectors.”
Barring any unforeseen circumstances, the Group is cautiously optimistic on its performance in 1Q14 and FY2014.
Singapore, 12 November, 2013 Singapore Exchange Mainboard-listed ECS Holdings Limited (“ECS” or the “Group”) announced today that its net profit after tax for the third quarter ended 30 September, 2013 (“3Q 2013”) rose 4.5% to $8.7 million, on the back of 11.4% revenue growth to $999.3 million compared to the same period a year ago.
The leading regional Info-Comm Technology (“ICT”) solutions provider representing best-of-class global brand names said the Enterprise Systems segment grew 32.3% to $322.8 million in 3Q 2013 from $244.0 million in 3Q 2012, mainly due to higher sales of networking hardware, servers, software products and enterprise storage. The Distribution segment grew 4.2% to $668.4 million, mainly from increased sales of tablets, consumer storage, and printers, partially offset by a decrease in the sales of notebooks.
North Asia revenue rose 8.5% to $584.6 million from $538.9 million in 3Q 2012 driven by stronger sales of servers, networking hardware and software products. It accounted for 58.5% of Group sales in 3Q 2013. Southeast Asia’s revenue rose 15.7% to $414.7 million from $358.4 million, respectively, mainly due to increased sales of consumer storage, which accounted for 41.5%. Gross profit for 3Q 2013 increased 6.8% to $38.2 million from $35.8 million in 3Q 2012 due to higher revenue. However, gross margin declined to 3.8% from 4.0% mainly due to lower margins recorded by the Enterprise Systems segment.
Total operating expenses were 6.2% higher in 3Q 2013 compared to 3Q 2012 as a result of higher provisions made for doubtful debts and fair value loss on financial instruments. Despite the increase, the total operating expenses’ percentage of revenue improved to 2.9% from 3.1%, year-on-year.
Our net gearing remains healthy at 0.46 times as at 30 September, 2013.
Earnings per share rose to 2.37 cents in 3Q 2013 from 2.27 cents in 3Q 2012 while net asset value per share increased to 99.32 cents as at 30 September, 2013 from 92.83 cents as at 31 December, 2012.
Commenting on the results, Mr. Ong Wei Hiam, Group Chief Executive Officer of ECS, said, “The decline in sales of notebooks was offset by higher sales of tablets as the IT landscape continues to shift towards mobility and cloud computing. Despite the changes and consolidation in the industry, ECS is well-positioned as it has strong, long-standing relationships with its principals even as it continues to deepen and widen its distribution network in the region.”
Mr Tay Eng Hoe, Group Executive Chairman, said, “We will focus on growing our mobility business by expanding our distribution coverage and increasing our product range. Apart from consumer products, we are excited about the enterprise market as we continue to see promising results in that segment, which reported a 32.3% year-on-year growth in 3Q 2013.”
In view of the above, the Group expects FY 2013’s performance to be better than that of FY 2012.
Singapore, 13 August 2013 Singapore Exchange Mainboard-listed ECS Holdings Limited (“ECS” or the “Group”) announced today that its net profit after tax for the second quarter ended 30 June 2013 (“2Q 2013”) rose 11.0% to $9.0 million on the back of 23.5% revenue growth to $1.02 billion.
The leading regional Info-Comm Technology (“ICT”) solutions provider representing best-of-class global brand names said strong sales in the Distribution and Enterprise segments helped its first-half Group revenue to hit a record S$2.11 billion.
In 2Q 2013, the Distribution segment grew 25.5% or $147.0 million to $723.5 million from $576.5 million in 2Q 2012, on better sales of consumer storage, media tablets, desktop PCs and notebooks. The Enterprise Systems segment grew 20.1% to $285.6 million over the same periods, driven by higher sales of networking hardware, servers and enterprise storage.
North Asia revenue rose 24.6% to $578.1 million from $463.8 million in 2Q 2012 driven by stronger sales of media tablets, servers, and networking hardware and accounted for 56.8% of Group sales in 2Q 2013.
South East Asia’s revenue rose 22.1% to $439.4 million from $359.8 million, respectively, on improved sales of consumer storage, media tablets and networking hardware, accounting for 43.2%.
Gross profit for 2Q 2013 increased marginally to $36.8 million from $36.7 million in 2Q 2012 as gross margin narrowed to 3.6% from 4.5% mainly due to higher sales of lower-margin media tablet and lower margins from consumer storage.
Additional provisions for inventory obsolescence of $1.6 million and unfavourable trade exchange differences of $0.8 million in 2Q 2013 also contributed to the lower gross margin.
Total operating expenses were 3.3% lower in 2Q 2013 compared to 2Q 2012. Total operating expenses’ percentage of revenue improved to 2.6% from 3.3% year-onyear. This was a result of lower provisions made for doubtful debts and improvements in operating efficiencies in 2Q 2013.
Due to revenue growth and improvement in cost efficiencies, the Group’s net profit for 2Q 2013 was lifted by 11% to $9.0 million from $8.1 million in 2Q 2012.
ECS generated a strong positive operating cash flow of $50.6 million in 2Q 2013, reversing the negative operating cash flow of $32.2 million in 2Q 2012, mainly from higher profits and better working capital management. This brings the cash and bank balances at $92.4 million while bank borrowings stood at $228.9 million with a net gearing at 0.38 times as at 30 June 2013.
Earnings per share rose to 2.45 cents in 2Q 2013 from 2.21 cents in 2Q 2012 while net asset value per share increased to 97.02 cents as at 30 June 2013 from 92.83 cents as at 31 December 2012.
Mr. Ong Wei Hiam, Group Chief Executive Officer of ECS, said, “Global shipments for desktops and notebooks fell again this first-half, with the continued shift towards mobility devices such as smartphones and tablets. We have been executing strategies to increase market share and product offerings, through expanding our distribution coverage and increasing its mobility product range. These efforts have yielded positive results as our Distribution segment reported a 23.9% revenue growth despite the slowdown in the demand for desktops and notebooks worldwide.”
Mr Tay Eng Hoe, Group Executive Chairman, said, “In addition, we will also focus to grow our Enterprise Systems such as networking hardware, servers and enterprise storage, a sector which generally commands higher margins. This resulted to a revenue growth of 17.9% in the Enterprise Systems in the first-half compared with the same period last year.”
In view of the above, ECS expects the performance to be satisfactory for 3Q 2013 and FY 2013
Singapore, 10 May 2013 - ECS Holdings Limited (“ECS” or the “Group) announced today that its net profit for the three months ended 31 March 2013 (“1Q 2013”) grew 34.2% to $8.3 million, outpacing the 20.9% revenue growth to $1.1 billion from a year earlier, as all three business segments contributed higher sales. This is the highest-ever revenue recorded by the Group for any quarter.
The Singapore Exchange Mainboard-listed leading regional Info-Comm Technology (“ICT”) solutions provider representing best-of-class global brand names said the increase in net profit to $8.3 million in 1Q 2013 arose mainly from the growth in revenue generated with only a moderate increase in operating costs.
Revenue growth was mainly contributed by Distribution segment, which increased by 22.6% or $151.5 million to $823.2 million from $671.7 million in 1Q 2012. It was achieved on the back of higher sales of mobility devices, consumer storage and peripheral products, partially offset by lower sales of notebooks, desktop PCs, supplies and imaging products.
Revenue for the higher-margin Enterprise Systems grew 15.5% to $257.4 million while IT Services revenue rose 39.5% to $9.8 million year-on-year, mainly due to increased sales of networking hardware, software products and enterprise storage.
On geographical basis, North Asia revenue grew 12.3% to $663.9 million in 1Q 2013 from $591.1 million in 1Q 2012, driven by stronger sales of mobility devices and software products. South East Asia revenue increased 37.3% to $426.5 million from $310.5 million, respectively, mainly from improved sales of consumer storage, desktop PCs, mobility devices and networking hardware products.
The revenue growth lifted gross profit to $39.9 million in 1Q 2013 from $36.3 million in 1Q 2012. However, gross profit margin declined to 3.7% from 4.0% due to higher sales contribution of lower-margin mobility devices, particularly in China, and consumer storage products in Singapore.
Total operating expenses were 4.0% higher in 1Q 2013 compared to 1Q 2012 due to higher marketing expenses and fair value loss on financial instruments. Despite this, total operating expenses as a percentage of revenue improved to 2.7% in 1Q 2013 from 3.2% in 1Q 2012 due to improved operational efficiencies.
Improvements in gross profit and cost and financial efficiencies lifted the Group’s net profit before interest and tax (“PBIT”) for 1Q 2013 by 34.3% to $13.3 million from $9.9 million in 1Q 2012. Year-on-year, the PBIT growth rates of all three business segments outpaced their respective revenue growth rates. The Enterprise Systems segment recorded the highest PBIT growth of 55.3% year-on-year, followed by IT Services and Distribution segments of 51.8% and 32.1%, respectively.
Cash and bank balances stood at $64.3 million while bank borrowings stood at $241.1 million with net gearing at 0.50 times as at 31 March 2013.
Earnings per share (“EPS”) rose to 2.26 cents in 1Q 2013 from 1.69 cents in 1Q 2012 while net asset value (“NAV”) per share increased to 96.54 cents as at 31 March 2013 from 92.83 cents as at 31 December 2012.
Mr. Ong Wei Hiam, Group Chief Executive Officer of ECS, said, “Revenue has crossed the $1.0 billion mark for the second consecutive quarter, underscoring the success of our efforts to increase the top line amidst a challenging market. We will continue to focus on expanding higher-margin Enterprise Systems to improve the gross margin as well as the bottom-line.”
Mr Tay Eng Hoe, Group Executive Chairman, said, “Although there will be a slow-down in the desktop PC and notebook sectors, we expect FY 2013 to be better than FY 2012 as global IT spending continues to be driven by double-digit growth for mobile devices, cloud services and enterprise storage. The Group will capitalise on this trend to grow our mobility devices business and expand further in emerging markets such as China and Indonesia to drive revenue and profitability growth.”
In view of the above, the Group is cautiously optimistic on the performance of 2Q 2013 and of FY 2013 that it will be better year-on-year.
HIGHER-MARGIN ENTERPRISE SYSTEMS SEGMENT RECORDS HEALTHY GROWTH
FY2012 revenue increased 1.0% to $3.64 billion, driven by higher contribution from Enterprise Systems Enterprise Systems revenue up 20.8% in FY2012 to $1.11 billion; higher sales of storage and software products as 4Q12 revenue grew 81.4% year-on-year Total operating expenses lower in 4Q12 and FY2012 compared to a year earlier as improvements in operating and financial efficiencies kick in Proposes first and final dividend of 2.2 cents per share; representing 27.2% of the profit attributable to shareholders HIGHER-MARGIN ENTERPRISE SYSTEMS SEGMENT RECORDS HEALTHY GROWTH Singapore, 26 February 2013 - ECS Holdings Limited (“ECS” or the “Group”) announced today that its revenue for the financial year ended 31 December 2012 (“FY2012”) grew by 1.0% to $3.64 billion from a year earlier, driven by higher contributions from its higher-margin Enterprise Systems segment.
The Singapore Exchange Mainboard-listed leading regional Info-Comm Technology (“ICT”) solutions provider representing best-of-class global brand names said the Enterprise Systems recorded 20.8% growth in revenue for FY2012 to $1.11 billion from $0.92 billion in FY2011, driven by higher sales of storage and software products.
However, revenue for the Distribution segment declined 6.1% to $2.50 billion in FY2012 mainly due to lower sales of desktop PCs, notebooks and imaging products, partially offset by growth in sales of mobility devices, reflecting both the economic uncertainty and the clear shift in consumer IT patterns globally.
ECS’ FY2012 net profit decreased 24.4% to $29.6 million from $39.2 million for FY2011 with gross profit of $143.8 million compared to $167.3 million, respectively. Gross profit margin narrowed to 3.9% from 4.6% over the comparative period due to the change in sales mix which resulted in higher revenue contribution from lower-margin mobility devices in FY2012.
The Group’s 4Q12 revenue grew 10.5% to $1.02 billion from $924.5 million in 4Q11, mainly due to the 81.4% revenue growth from Enterprise Systems segment led by higher sales of storage, software and networking hardware. This was partially offset by a 12.1% decline in the Distribution segment.
Geographically, North Asia remained ECS’ largest revenue contributor at $589.6 million in 4Q12 (4Q11: $617.5 million), followed by South East Asia, which grew 40.5% to $431.5 million in 4Q12 (4Q11: $307.0 million).
Net profit in 4Q12 declined 21.4% to $7.1 million from $9.0 million in 4Q11 as GP margin narrowed to 3.4% from 4.5%. This resulted from the change in sales mix, particularly in China and lower margin recorded from networking hardware. In addition provisions for inventory obsolescence of $0.8 million were incurred in 4Q12 compared to a $2.3 million reversal of inventory obsolescence in 4Q11.
Total operating expenses were 8.9% lower in 4Q12 compared to 4Q11 mainly due to selling and distribution expenses declining by 16.2%, partially offset by a 11.1% increase in general and administrative expenses. Total operating expenses as a percentage of revenue improved to 2.8% in 4Q12 from 3.3% in 4Q11.
Cash and bank balances stood at $108.2 million while bank borrowings stood at $243.0 million with net gearing at 0.40 times as at 31 December 2012.
Earnings per share (“EPS”) declined to 8.10 cents in FY2012 from 10.74 cents in FY2011 while net asset value (“NAV”) per share increased to 92.83 cents as at 31 December 2012 from 89.37 cents a year earlier. ECS has proposed a first and final dividend of 2.2 cents per share, representing 27.2% of the profit attributable to shareholders.
Mr. Ong Wei Hiam, Group Chief Executive Officer of ECS, said, “ECS revenue has continued to grow even as we position ourselves for the consumer shift towards mobility devices instead of PCs. We are encouraged by the growth of the Enterprise Systems segment, especially in the fourth quarter, and will continue to focus efforts to strengthen momentum in this higher-margin business.”
Mr Tay Eng Hoe, Group Executive Chairman, said, “Going forward, the Group will focus on emerging markets such as China and Indonesia to drive revenue and profitability growth in 2013. In addition, the Group will continue to strengthen working capital management, as well as improve operating and financial efficiencies.”
In view of the uncertainties in the overall global macro-economies, the Group is cautiously optimistic about its performance in 1Q13 and FY2013
PT ECS Indo Jaya appointed as Authorised Distributor ECS Companies in Southeast Asia ¡V Indonesia, Malaysia, Philippines, Singapore &Thailand are now Authorised Distributors Partnership capitalises on the burgeoning Cloud Computing Market Singapore, 26 November 2012 -V Singapore Exchange Mainboard-listed ECS Holdings Limited (“ECS” or “the Group”), a leading regional Info-Comm Technology (“ICT”) provider, announced today that its subsidiary in Indonesia, PT ECS Indo Jaya (“ECS Indonesia”) has been appointed by EMC Corporation as its Authorised Distributor.
Under the agreement, ECS Indonesia will distribute the entire range of EMC storage solutions including hardware and software products to its extensive network of 4,000 resellers across Indonesia. ECS partnership with EMC started in 2006 with the appointment of ECS Singapore and ECS Thailand as its distributor and has since extended to Malaysia and the Philippines.
With the appointment of ECS Indonesia as EMC’s distributor, all five Southeast Asian countries (Indonesia, Malaysia, Philippines, Singapore and Thailand) in the ECS Group are now EMC’s Authorised Distributor. The growth in the ECS-EMC partnership further strengthens EMC’s and ECS’ commitment to increase market share and brand awareness through strategic alliance with ECS’ wide coverage of more than 23,000 channel partners in the Asia Pacific region.
“ECS is continually on the lookout for opportunities to strengthen our relationship with top IT vendors like EMC to tap the growing IT trends across the region. As the market for Cloud Computing expands, we are happy to partner with EMC to tap this exciting opportunity. Our strong relationship with channel partners puts us in good stead to help EMC acquire market share as the opportunities for enterprise storage and cloud computing burgeon,¡” said Mr Narong Intanate, Group Chief Executive Officer of ECS Holdings Limited.
“Cloud computing is one of the fastest growing segments we’re seeing in the market today and ECS possesses exceptional wealth of industry expertise and a solid reseller network across the region to help customers build out the right IT infrastructures with EMC’s industry-leading portfolio of products and solutions,” said Chee Heng Loon, EMC’s Channel Director for South East Asia. “Both EMC and ECS are aligned in vision and strategy to address customers’ business priorities, and well-positioned to lead them on their cloud journey.”
EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyse their most valuable asset - information - in a more agile, trusted and cost-efficient way.
ECS and EMC are committed in building up the capabilities of its channel partners to support customers with EMC’s leading portfolio of products, solutions and services. With ECS’ vast experience and strong knowledge of the local industry and IT landscape, it is confident in better serving and addressing customers’ business needs.
The Board of Directors of ECS Holdings Limited (the “Company”) wishes to announce that the registered address of the Company has been changed to 8 Temasek Boulevard #34-02 Suntec Tower Three Singapore 038988 with effect from 11 July 2011.
By Order of the Board Eddie Foo Toon Ee Company Secretary
ECS Ranked as One of the Top 10 Fastest Growing Tech Companies in ZDNet Asia Top Tech Index
The only Singapore-based company listed in ZDNet Asia’ inaugural index; Recognised based on average year-on-year revenue growth over four years
SINGAPORE, 1 November 2005 – ECS Holdings Limited is now one of the Top10 fastest growing technology companies in this region, based on rankings just posted by ZDNet Asia, one of Asia’ premier technology publisher.
Other well-known international and regional technology companies join ECS, the only Singapore-based company, in ZDNet Asia’s inaugural ranking. The fastest growing index report is based on average year-on-year revenue growth over the last four years.
ECS, publicly-listed on the mainboard of the Singapore Stock Exchange, is today one of Asia Pacific’s leading infocommunications and technology distribution firms.
Through this achievement, ECS fulfills a goal set by the companies’ leadership to earn inclusion into this select tier of top technology companies doing business in Asia.
“This is a remarkable achievement for ECS and a tremendous testament to the work of our employees and the senior management team,” said Tay Eng Hoe, Group CEO at ECS. “Their passion for excellence and commitment are the reasons we are one of the region’s fastest growing technology companies.”
Reaching the Top 10 fastest growing companies is only the latest in a series of milestones that the company has passed in recent months. The company was recently awarded Top 14th in the Singapore International 100 Ranking of Companies with Highest Overseas Revenue (awarded by International Enterprise Singapore) and one of the 50 Fastest Growing Companies (certified by DP Information Networks). ECS’ offices across the region have continued to be ranked amongst the top distributors for global IT vendors such Apple, Hewlett-Packard, IBM, Microsoft, Oracle, Sun Microsystems, among others.
Mr. Tay added that he hope the added recognition from ZDNet Asia will boost the IT distribution industry. “This business is no longer about logistics, cost controls and shipping because every distributor that is still around is already fast and efficient. IT distribution’s leaders such as ECS are scaling our businesses with emerging technologies, aggressive acquisitions and geographic expansion. It’s about solutions today, and that’s a big shift for this industry.”
Isabelle Chan, senior editor for ZDNet Asia, said, “I wish to congratulate ECS and the other companies that made it to ZDNet Asia’s Top Tech 50 and Fastest Growing Index. In today’s challenging economic environment, posting double- and triple-digit growth rates is certainly no mean feat. The fact that these companies have grown at such stellar rates indicates there are still lots of market opportunities in the technology sector. And in an industry dominated by Western companies, I am glad to see a significant number of Asian companies driving much of today’s growth and innovation.”
The company’s attainment of “Top 10 fastest growing” status among technology companies in this region is also expected to have a direct effect on recruiting both top quality partners and staff to the company.
“We know that the best employees and technology partners want to be part of the fastest growing IT distribution firm,” said Mr. Tay. “They attract the best and brightest people as well as leading technology players.”
About ECS Holdings Limited
ECS Holdings Limited is a leading ICT product and services provider, serving and supporting a wide regional customer base. The Group has offices in 29 cities covering China, Indonesia, Malaysia, Singapore and Thailand. ECS’ three core businesses are Enterprise Systems, IT Services and Distribution. Its Enterprise Systems Division designs, installs and implements IT infrastructure for companies, while its IT Services Division provides a comprehensive range of professional, technical support and training services. Leading IT vendors use ECS’ network of over 15,000 channel partners in the region to distribute their products. The Group has a consistent profit track record and management is focused on operational excellence to achieve sustainable profit growth and enhance shareholder returns. ECS has been listed on the Mainboard of the Singapore Exchange Securities Trading Limited since 2001.
For further information, please contact: Ms Sharon Boh-Friberg ECS Holdings Ltd Mobile: +65 9180-8062 or email: firstname.lastname@example.org
The Board of Directors of ECS Holdings Limited (the “Company”) wishes to announce that the Company has entered into a joint venture agreement (the “Joint Venture Agreement”) with the founders of PT Harrisma Agung Jaya (the “Joint Venture Partners”) to form a joint venture cgompany in Singapore called “ECS Indo Pte. Ltd.” (“ECS Indo”).
The business of ECS Indo is focussed on the distribution of IT products and services in Indonesia for the Indonesian market in collaboration with PT Harrisma Agung Jaya (“PT Harrisma”), a company incorporated in Indonesia with over 15 years experience in the IT industry. PT Harrisma together with its subsidiaries has over 8 branches and 10 service centres in various parts of Indonesia. The principal business of PT Harrisma is in the distribution of IT products, systems and services in Indonesia. The Joint Venture Partners are the current shareholders and founders of PT Harrisma. The Joint Venture Partners are not related to any director, substantial shareholder or executive officer of the Company and currently do not hold any interest in the Company.
ECS Indo will have an authorised share capital of S$20,000,000.00 divided into 20,000,000 ordinary shares of S$1.00 each and the issued and paid-up share capital will be S$1,000,000.00 divided into 1,000,000 ordinary shares of S$1.00 each. The Company will subscribe for 599,999 ordinary shares of S$1.00 each in the capital of ECS Indo at par, such shares will constitute 60% of the proposed enlarged issued share capital of ECS Indo. The Joint Venture Partners will subscribe for an aggregate of 399,999 ordinary shares of S$1.00 each in the capital of ECS Indo at par, such shares will constitute 40% of the proposed enlarged issued share capital of ECS Indo. The Company will have majority representation on the board of ECS Indo.
Under the Joint Venture Agreement, the Joint Venture Partners have provided a profit guarantee to the effect that ECS Indo will be able to attain net profit before tax of at least US$1 million per annum over the next three consecutive years commencing from FY2004. Based on the number of ECS shares outstanding as at 31 December 2003 and on the basis that ECS Indo attains profits at least equal to the profit guarantee, ECS Indo’s contribution will translate to an increase in ECS’ basic earnings per share of 0.31 cents. The transaction will not have any material impact on the Company’s net tangible assets for the year ending 31 December 2004.
ECS Indo has also entered into a conditional Call Option Agreement with the Joint Venture Partners pursuant to which the Joint Venture Partners have granted a ten-year call option to ECS Indo to acquire, if ECS Indo so desires, all the issued and paid-up shares in the capital of PT Harrisma on the terms and conditions of the Call Option Agreement. The Call Option may be exercised during the period commencing on the day falling two years from the date hereof or such other date as may be agreed between the ECS and the Joint Venture Partners and continuing thereafter until the tenth anniversary thereof. Subject to satisfactory due diligence by ECS, the consideration for the acquisition of the shares in PT Harrisma is expected to be US$2 million and was arrived at on a willing buyer-willing seller basis and takes into account the expected net tangible assets (“NTA”) of PT Harrisma and its subsidiaries (on a consolidated basis) in the future. The Call Option Agreement provides that in the event that the NTA of PT Harrisma and its subsidiaries is less than US$2 million at the time the Call Option is exercised, the Joint Venture Partners shall take such steps to increase the NTA to US$2 million.
Rationale and Funding
The joint venture is in line with the Company’s strategy to expand our distribution network in the region. The joint venture will enable the Group to enhance its distribution network in the region and will provide a wider market access for the Group’s businesses.
The Company’s 60% investment in, and the provision of financing to, ECS Indo as well as the acquisition of PT Harrisma (if proceeded with) will be funded by internal resources and/or bank facilities.
None of the Directors or substantial shareholders of the Company have any interest, direct or indirect, in the above transactions. A copy of the Joint Venture Agreement and the Call Option Agreement is available for inspection during normal business hours at the Company’s registered office for a period of 3 months from the date of this announcement.
Singapore, August 2003 - Borland Singapore Pte Ltd and leading Asia Pacific e-infrastructure enabler, ECS Holdings Ltd, today announced a joint collaboration to enhance the application lifecycle management of organisations through Borlands’ leading-edge technology. Under this arrangement, the ECS Group will distribute Borland’s technologies including Borland JBuilder?, Delphi?, C++ Builder® and C#Builder? in four countries - Singapore, China, Thailand and Malaysia to help customers increase application development speed, improve return on investment and decrease cost of ownership.
The Borland-ECS Group relationship brings to Asia Pacific customers access to Borland’s industry-leading products through ECS’ wide and well-established base of more than 10,000 resellers. customers will be able to leverage ECS’ distribution network, through its subsidiaries in Singapore, China, Malaysia and Thailand, together with Borland’s award-winning application development technologies.
The joint arrangement aligns with ECS’ vision of being a leading e-infrastructure enabler in the region to bring best-in-class technologies to its customers. “As an IT Hub, our commitment is to deliver cost-effective total solutions with a high level of expertise and technical know-how. With Borland’s suite of application life cycle management products, we can now offer even more comprehensive integration and end-to-end solutions for the extended enterprise,” said Mr Jansen Ek, Group Chief Operating Officer, ECS Holdings Limited. “Borland creates the best and most tightly integrated development environments which significantly reduces the time span of the application development lifecycle, and it is only natural that we strive to bring this important advantage to our customers,” continued Ek.
Forging relationships with leading distributors is an important strategy for Borland as it continues to penetrate broader markets throughout Asia Pacific. “ECS has a very strong regional presence, and is known as a leading total IT solutions provider in Asia,” said Michael King, Managing Director ASEAN, of Borland. “We believe this relationship will open up new opportunities for customers looking to accelerate application development and deployment. More customers will be able to reapidly and effectively create and implement applications critical to their businesses.”
About ECS Holdings Ltd
ECS Holdings Limited is the holding company of a group of four subsidiary companies comprising ECS Computers (Asia) Pte Ltd in Singapore, ECS Technology (China) Limited in China. ECS Kush Sdn Bhd in Malaysia, and The Value Systems Co., in Thailand. The Group is a leading e-infrastructure enabler and e-services provider serving and supporting Asia’s growing internet economies. The substantial shareholders of ECS comprise: Solectron Technology Singapore Pte Ltd (24.6%); Pacific City International Holdings Limited (16.5%); Technocrat Investments Limited (10.7%); Glorious Success Limited (5.3%). The shares of ECS are listed on the mainboard of the Singapore Exchange Securities Trading Limited as of 9 February 2001.
Borland (Singapore) Pte Ltd is a subsidiary of Borland Software Corporation (Nasdaq NM: BORL), a world leader in platform independent software development and deployment solutions that are designed to accelerate the entire application development lifecycle. By connecting managers, testers, designers, developers, and implementers in real time, Borland enables enterprises worldwide to define and sustain their competitive advantage.
All Borland brand and product names are trademarks or registered trademarks of Borland Software Corporation in the United States and other countries. All other marks are the property of their respective owners.
Safe Harbor Statement
This release contains “forward-looking statements” as defined under the Federal Securities Laws, including the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created by such laws. All statements that are not historical are forward-looking. Forward-looking statements may relate to, but are not limited to, Borland future financial performance, capital expenditures, revenues, acquisitions, earnings, costs, product development plans, global expansion plans, estimated size of potential customer markets, demand for Borland products, the projected acceptance by existing or potential customers of new technologies and the potential features of, or benefits to be derived from, the products developed, marketed or sold by Borland, market and technological trends in the software industry and various economic and business trends. Such forward-looking statements are based on current expectations that involve a number of uncertainties and risks that may cause actual events or results to differ materially. Factors that could cause actual events or results to differ materially include, among others, the following: general economic factors and capital market conditions, general industry trends, the ability to successfully integrate acquisitions, costs associated with acquisitions, diversion of management attention from other business concerns due to acquisitions, undisclosed or unanticipated liabilities resulting from acquired companies, the potential effects on Borland of competition in computer software product and services markets, growth rates in the software and professional services markets that Borland participates in, rapid technological change that can adversely affect the demand for Borland products, shifts in customer demand, market acceptance of new or enhanced products or services developed, marketed or sold by Borland, delays in scheduled product availability dates, open source technologies that compete with Borland products, actions or announcements by competitors, software errors, reduction in sales to or loss of any significant customers, the ability of Borland to protect its intellectual property rights, the dependence on technologies licensed from third parties, the ability of Borland to attract and retain qualified personnel, the ability of Borland to contain costs and unanticipated impact on economic and financial conditions in the United States and around the world resulting from the geopolitical conflicts and other consequences of the United States’ war against terrorism. These and other risks may be detailed from time to time in Borland periodic reports filed with the Securities and Exchange Commission, including, but not limited to, its latest Annual Report on Form 10-K and its latest Quarterly Report on Form 10-Q, copies of which may be obtained from http://www.sec.gov/. Borland is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
To Give Local ISV Partners a Competitive Edge
PITSTOP Centres to be established in five South East Asian Countries - ECS to manage centre in Singapore.
Singapore, 23 September 2003 - Hewlett-Packard (HP) and Oracle Singapore today announced the launch of a regional network of competency and development centres, known as Partners Innovative Technology and Solution Centres (PITSTOP). Both HP and Oracle will together commit an estimated US$10 million in products and services over the next three years around South East Asia.
This investment aims to fast-track the development of a strong regional ecosystem made up of robust local communities of Independent Software Vendors (ISVs) and System Integrators (SIs) within the South East Asian infocomms industry. PITSTOP centres will help to strengthen their technology capability, showcase their solutions and gain access to overseas markets.
There will be five PITSTOP centres set up in Singapore, Malaysia, Indonesia, Philippines and Thailand over the next few weeks. HP and Oracle expect this network and its programmes to generate revenue of up to US$100 million for their partners over a period of five years.
This is the first such initiative in the region. At the core of this initiative, partners of HP and Oracle will be able to use the PITSTOP centres to significantly reduce both costs and time-to-market by facilitating collaboration locally & across geographic borders. PITSTOP centres will also function as a market catalyst to seek out business opportunities for local infocomm enterprises. Local developers can leverage all PITSTOP centres to expand their offshore resources, support their overseas clients, develop cross-border strategic alliances, and penetrate new markets.
“Nearly one-third of the developer community in South East Asia are either partners with HP or Oracle and they constantly look to us for more support. PITSTOP centres around the region enable us to help our partners with our technological and marketing expertise to become more effective and market-focused,” said Keith Budge, Regional Managing Director, South Asia Region, Oracle Corp. “In addition, the PITSTOP centres are an important platform for the technology community to create innovative technologies and solutions.”
As a ‘live’ lab for localised product development, all PITSTOP centres will run the full range of Oracle infrastructure software and Oracle E-Business Suite on HP’s technology platform. Each PITSTOP centre will provide application developers with a well-supported competency centre that allows partner ISVs to improve their skills, develop applications & demonstrate their solutions.
“Through PITSTOP, we aim to nurture greater entrepreneurship in the local and regional IT community. We are making our enabling technologies and technical resources easily available; so that these developers can focus on developing solutions quickly and get to the market fast. We want people to come together to discover, create and experiment. This is the cornerstone of the HP’s “Invent” spirit. It is what it takes to be a winner and leader in this industry,” said Tan Choon Seng, Vice President and Managing Director, South East Asia/Singapore, HP.
Both HP and Oracle will also provide consultants who will help partners gain hands-on experience with the latest and complete range of HP and Oracle technologies at the PITSTOP centres. Through regular training and workshops, HP and Oracle will also be helping develop the expertise of consultants in the enterprise computing community within each country.
PITSTOP in Singapore
IDA CEO, Mrs Tan Ching Yee launched the first PITSTOP centre in Singapore today. Speaking at the launch ceremony, Mrs Tan said, “IDA is encouraged to see key technology partners, such as HP and Oracle, collaborate to help our local Infocomm companies develop capability and gain access to regional markets through the PITSTOP initiative. This regional initiative is expected to increase the revenue of 50 local companies under the Infocomm Local Industry Upgrading Program by US$27 million in the next five years.”
In each of the five countries, HP and Oracle will appoint a local partner to manage the PITSTOP centre. The first PITSTOP centre will be established in Singapore jointly under Astar Technology (S) Pte Ltd and ECS Computers (Asia) Pte Ltd (an Oracle Value-added Distributor), both wholly owned subsidiaries of ECS Holdings Limited. The local PITSTOP centre will help local ISVs and SIs grow and mature before assisting their move to the regional and global marketplace; it will also play a key role as an education and training facility for technology updates and technical training.
“ECS is proud to be selected as the local partner in Singapore for PITSTOP,” said Mr Tay Eng Hoe, Group Chief Executive Officer, ECS Holdings Limited. “The launch of this PITSTOP centre marks a milestone for ECS as it manifests our relentless pursuit for excellence as an e-infrastructure enabler. As ECS’ strategy is to grow our business with our partners, PITSTOP is an attractive, viable and compelling proposition. With this facility, the best-of-breed solutions from HP and Oracle can be readily brought to our partners both locally and regionally,” continued Tay.
Oracle is the world’s largest enterprise software company. For more information about Oracle, visit our Web site at http://www.oracle.com.
HP delivers vital technology for business and life. The company’s solutions span IT infrastructure, personal computing and access devices, global services and imaging and printing for consumers, enterprises and small and medium business. For the last four quarters, HP revenue totalled $70.4 billion. More information about HP is available at http://www.hp.com.
About Astar Technology Astar Technology (S) Pte Ltd is a wholly-owned subsidiary of ECS Holdings Ltd, a mainboard listed company of the SGX with subsidiaries in Singapore, China, Malaysia and Thailand. The group achieved a turnover of S$1.2 billion for FY2002. As an e-infrastructure enabler, Astar works with its wide and established channel of system integrators in the design, installation and implementation of IT infrastructure for enterprise customers. Aggregating the best-of-breed enterprise servers, data storage, info-security and networking, e-services and application integration technologies, Astar enables corporations to fully exploit the Net Economy through integrated solutions from strategic alliances with industry-leading vendors.