Silverlake Axis struggles for big-money deals as banks' woes mount

Banks account for 80% of its business.

Large contracts might be few and far between for Silverlake Axis for the current financial year.

"[The] challenging outlook for banks implies that big licensing contracts may be difficult in FY16," DBS said in a report.

DBS noted that banks account for 80% of Silverlake's core banking software business, while the rest come from insurance, payment, retail and logistics.

DBS expects Silverlake to secure $50m (RM150m) worth of new orders for FY16, comparable to its order wins in FY15. However, DBS expects lower topline growth on back of declining gross margins.

“With relatively uncertain economic conditions in China and the region, we could see delays in upgrades and new projects. Relatively high margins may be difficult to maintain in the long term,” DBS said.