♦ Financial results mainly impacted by provision for doubtful debts and obsolete stocks
SINGAPORE - 1 March 2010 - Teledata (Singapore) Limited
♦ Since coming onboard end of 2009, the new management team is actively restructuring operations and executing strategies to regain its industry position
♦ Group is now cautiously optimistic of its prospects for FY2010
电传数据有限公司 ("Teledata" or the "Group"), a leading regional IT systems integrator and communications services company,
has, under its previous management, reported a net loss for FY2009 but the current new
management is optimistic of a turnaround in the current year.
For the 12 months ended 31 December 2009, the Group incurred a net loss of $7.9 million
compared with a loss of $2.4 million a year ago. Excluding the provision for doubtful debts and
inventory obsolescence, the net loss for the period would have been $3.6 million.
The latest results translate into a loss per share of 0.67 cents compared with 0.21 cents last
year. Net asset value per share as at 31 December 2009 was 0.67 cents.
During the period under review, the Group continued to experience difficult market conditions
worsened by the financial crisis. Against this backdrop, the Group's FY2009 revenue declined
30% to $17.9 million, while its gross profit decreased 65% to $2.5 million partly due to the
provision of obsolete stocks of $1.5 million.
On an operating level, the Group's total operating cost grew 9% to $10.9 million in FY2009,
mainly due to the provision for doubtful debts amounting to $2.7 million. This was partially
offset by lower foreign exchange losses as well as lower staff cost and directors'fees.
Mr Christopher Pan, the newly-appointed Chairman and CEO of Teledata since November 2009,
says, "We recognise that a lot needs to be done to improve the financial performance of the
Group. Since I joined the Company end of last year, the new management team has led the
Group through a thorough renewal process to create a tighter, leaner ship. We are still in the
midst of an extensive corporate restructuring to streamline our operations and improve
"We have also beefed up the management team with industry veterans. As we seek to renew
and strengthen our position in the market place, the skills and expertise of our management
team will be a key factor in our strategies to expand our capabilities," says Mr Pan.
Since the new management came onboard, Teledata has signed a definitive agreement for a
S$35 million equity line of credit with GEM Global Yield Fund and GEM Investment Advisors, Inc,
in January this year.
"With a S$35 million credit line from GEM Global, Teledata now has greater flexibility to
capitalise on business opportunities and is looking to acquire investments to expand our
business in the region. With GEM coming onboard as our shareholder in future, we believe we
can also leverage GEM's strong track record in private equity investments," adds Mr Pan.
"We are in active discussions with numerous M&A prospects to strategically enhance our
position, while maintaining the highest degree of financial discipline. Despite a still challenging
telecommunications sector, the Group is cautiously optimistic of our prospects for the next 12
months," notes Mr Pan.
About Teledata (Singapore) Limited
Listed on the Main Board of the Singapore Exchange in 1994, Teledata is a leading IT systems
integrator and communications services company, unique for the depth of its capabilities and
the dedication of its people. Its people are experts in communications technology and excel at
delivering customised communications services and solutions to its customers.
Founded in May 1976, Teledata has since grown to become a regional company with offices in 6
countries and customers throughout the Asia Pacific region. The Group's clientele range from
large enterprises and telecommunication carriers to small enterprises in varied industries, some
of which have been the Group's customers for over 30 years. To deliver best-of breed, advanced
and flexible solutions, the Group partners world-class technology providers from around the