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Tuesday, November 26, 2013

Digistar net losses widens to RM16m in Q4 (Star)

Digistar Corporation Bhd sank deeper into the red with surprising net losses of RM16.12mil in the fourth quarter ended Sept 30, 2013 from losses of RM1.28mil a year ago due to higher operating costs while new projects were underway.

The company, which is involved in systems engineering and integration and also property development, reported on Monday that its revenue shrunk to only RM233,000 compared with RM12.81mil a year ago. Loss per share was 3.67 sen compared with 0.56 sen a year ago.

For FY ended Sept 30, 2013, it posted net losses of RM10.82mil compared with net profit of RM5.95mil in the previous financial year. Revenue shrank 30.5% to RM48.29mil from RM69.51mil.

Digistar reported the sharp decline in revenue was because its system integration and broadcast engineering projects were completed in FY12.

It said the wider losses were mainly due to higher operating cost, while new projects were still at their preliminary stage and hence revenue had yet to be recognised as at to-date in the system integration and broadcasting business segment.

Digistar said it was also affected by substantial high in operating cost and administrative expenses in its projects.

For the fiscal year ended Sept 30, 2013, revenue from its system integration and broadcast engineering fell to RM18.58mil from RM56.60mil a year ago.

“The decrease in the revenue generation for current quarter year ended was mainly due to the commencement of the new projects still at its preliminary stage in system integration and broadcast engineering projects.

“This segment recorded a pre-tax loss margin rate of 25.17% or (RM7.19mil) as compared to a pre-tax margin 16.11% or RM9.12mil in the preceding year corresponding quarter year ended,” it said.

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