Procurri experienced sharp growing pains in 3Q2019 as its staff costs jumped S$1.7 million.

3Q19
(S$‘000)

3Q18
(S$‘000)

Change
(%)

Revenue

55,803

55,382

0.8

Gross profit

20,804

19,839

4.9

Gross profit margin

37.3%

35.8%

1.55 points

EBITDA

4,297

5,100

(15.7)

Pre-tax profit

1,035

2,682

(61.4)

Net profit

1,089

1,422

(23.4)

The hiring of scores of extra engineers was to deal with increased customer issues after Procurri brought in-house formerly outsourced networking and server services at an acquired US company, Rockland Congruity.

"This integration of our maintenance portfolio overwhelmed the system that was currently in place. We decided to increase engineering headcount and put temporary processes in place," says Procurri in its 3Q19 financial results statement.

The worst is over at Rockland, in which Procurri acquired, in April 2019, the remaining 49% stake it didn't own.

"We expect our operating metrics to return to historical levels by end of Q1 2020."

 

Procurri: "A 21st century IT vendor"

SeanMurphy11.19b"The IT world was set up decades ago where OEMs manufacture new computers, they sell to the world’s largest companies which keep them for a few years and then replace them.

"We started Procurri in 2013 to address the new world and the new world is, the biggest companies have pains -- they have too many computers, they don't have them in the right locations, they want to keep their computers longer, they're moving workload to the cloud.

"They need a 21st century IT vendor, and that's what we're trying to build. Some people are mistaken about us being a low-end hardware distributor. We are not. We are a 21st century technology solutions provider. At the highest levels of these companies, CIOs have got pains that only a company like Procurri can fix. Our clients are some of the most important companies in the world.
"

- Sean Murphy, 
Chairman & CEO, Procurri,
at 3Q19 results briefing on 5 Nov 2019.

(NextInsight photo)

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