SNS Network Technology Bhd has secured an RM85.52 million order for AI super servers from a leading e-commerce platform, with delivery set for August 2024. Despite a decline in first-quarter revenue and profit, the company remains optimistic about its future, driven by growing demand for AI solutions.
4 July 2024 – SNS Network Technology Bhd, an internet service provider, has secured a significant purchase order valued at RM85.52 million for artificial intelligence (AI) super servers from a leading e-commerce platform in Southeast Asia and Taiwan. This order involves supplying AI super servers to a data center in Johor Bahru, specifically tailored to meet the client’s server requirements.
These high-performance servers, scheduled for delivery in August 2024, are designed to support intensive AI, machine learning, and deep learning applications. SNS Network Technology Managing Director Ko Yun Hung stated that this latest purchase order is only the beginning for the company. “We are on track to meet our AI hardware sales targets for this year,” he said, noting that the revenue from this order will be reflected in the third-quarter financial results ending October 31, 2024 (3Q25).
In conjunction with this announcement, SNS Network Technology disclosed its first-quarter financial results for FY25. The company reported a revenue of RM213.59 million, a 26.3% decline from RM289.84 million in the same period the previous year. This decrease is primarily due to lower revenue contributions from the sale of ICT products and fewer orders related to government projects through the commercial channel compared to the corresponding financial quarter last year.
In 1Q24, SNS Network Technology had secured major orders to supply laptops for the education sector through the commercial channel. Consequently, the company recorded a net profit of RM3.74 million, a 47.42% decrease from RM7.88 million in 1Q24. This drop was mainly due to lower revenue and increased selling and distribution expenses, largely attributed to higher salaries and commissions to third-party online marketplaces.
The company’s 1Q results were also influenced by the typical slowdown in business activities during festive seasons such as Chinese New Year and Ramadan. Despite the weaker quarter, the board of directors approved a first interim single-tier dividend of 25 sen per share, amounting to RM4.03 million, to be paid on August 28, 2024. Ko stated that this move demonstrates the firm’s confidence in the industry’s future prospects.
“This confidence is further solidified by our recent transfer from the ACE Market to the Main Market of Bursa Malaysia on June 13, 2024, less than two years after our debut as a publicly listed company,” Ko added.
Barring any unforeseen circumstances, SNS Network Technology remains optimistic about the business outlook, driven by growing demand for AI super servers from various technology firms. With the latest report from DC Byte’s 2024 Global Data Centre Index naming Johor Bahru as the fastest-growing market in Southeast Asia, SNS Network Technology is well-positioned to meet the increasing demand for cloud computing and AI.
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