Singapore-listed Procurri Corporation said it expected to report a substantially weaker performance for 1H2020 compared to 1H2019 due mainly to:

1) the impact from the global COVID-19 pandemic, and

2) a slow start in 2020 after the termination of discussions on a possible transaction with Park Place Technologies, LLC.

On 15 January 2020, Procurri announced that the possible transaction with Park Place was called off as it proved challenging to carve out Procurri’s third-party maintenance business segment at the right price and deal structure.

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SeanMurphy819Procurri is continually striving to build, develop and deliver a world class maintenance business, enterprise hardware resale business and an industry leading data centre ITAD business across North America, Europe, and Asia."

-- CEO Sean Murphy (photo)

Procurri subsequently decided to continue its focus on developing all three of its business segments – third-party maintenance, IT hardware resale, and IT asset distribution – together as an integrated platform.

This would provide a complete end-to-end service and leverage the synergies arising from the complementary nature of the each of its business segments.

During the first quarter of 2020, the impact of the COVID-19 pandemic increased. 

The pandemic-driven disruptions and the unmaterialised Park Place transaction both negatively impacted Procurri’s business due to, among others factors, customers holding back on their purchasing decisions, said Procurri.

On 28 May 2020, Procurri announced that under the US Paycheck Protection Program, two of its wholly-owned US subsidiaries -- Procurri LLC and Rockland Congruity LLC -- were granted financial aid of US$1,597,997.50 and US$1,756,300.00 respectively.

If the subsidiaries were to meet a certain set of criteria, the entire US$3.4 million in loans may be forgiven, said Procurri.

In such an event, the loans will be recognized as “Other Income” over the period in which they were granted, thereby softening the decline in net profit for 1H2020.

Procurri will announce its unaudited consolidated financial results for 1H2020 on or around 5 Aug 2020.

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