Vector89

Vector89 | Joined since 2020-03-19

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2020-06-17 08:25 | Report Abuse

No doubt the revenue drop (-50%) is disappointing particularly in the software segment. More clarification from management is needed on the software/b2b revenue generating model (pay per use/ subscription/ mix?).Perhaps, most retailers are out of business during MCO and that explains the low utilization of the portal, again MCO only began 18th March.

Silver lining is:
1. RM0.6mil due to subsidiary incorporation is non cash loss
2. +RM1m q.o.q staff costs could easily be mitigated via furloughing, salary deductions, etc
3. Continuous increase in customer base for retail b2b, most recent win is the 45 store hypermarket. Should this trend persist, can expect more retailers to jump into the digitization bandwagon and increase software revenue.