SNS Network Technology Berhad (“SNS Network”), a prominent Information and Communications Technology (ICT) solutions provider, has clinched a significant breakthrough with an RM85.52 million purchase order for artificial intelligence (AI) super servers from a leading e-commerce platform in Southeast Asia and Taiwan.
The contract entails supplying AI super servers to a data centre located in Johor Bahru, aimed at bolstering the client’s server capabilities. Scheduled for delivery in August 2024, these high-performance servers are designed to handle rigorous AI, machine learning, and deep learning tasks.
Ko Yun Hung, Managing Director of SNS Network, expressed optimism about the company’s trajectory following this major order. “This purchase order marks a pivotal milestone for SNS Network as we advance towards meeting our sales targets for AI hardware this year,” he affirmed. The revenue contribution from this deal is expected to feature prominently in the third quarter financial results ending 31st October 2024 (“3QFY25”).
In tandem with this announcement, SNS Network disclosed its first-quarter financial results for the period ending 30th April 2024 (“1QFY25”). Despite registering a decline in revenue to RM213.59 million, down 26.3% from RM289.84 million in the previous year, Ko attributed this primarily to reduced revenue from ICT product sales. The company faced fewer government project orders via commercial channels compared to the corresponding quarter in the previous fiscal year.
The first quarter also saw a profit before tax of RM5.11 million, a 50.5% decrease from RM10.32 million in 1QFY24. This decline was linked to lower revenue and increased selling and distribution expenses, including higher salaries and commissions for third-party online marketplaces.
Despite these challenges, Ko expressed confidence in the industry’s outlook, highlighting SNS Network’s transition from the ACE Market to the Main Market of Bursa Malaysia in June 2024. “This move underscores our positive outlook and commitment to growth,” he added.
Looking ahead, SNS Network remains upbeat about industry prospects, buoyed by rising demand for AI super servers across multiple technology sectors. With Johor Bahru identified as the fastest-growing market in Southeast Asia for data centres, the company is well-positioned to capitalize on the burgeoning opportunities in cloud computing and AI.
