Here's why Silverlake Axis profits still went up 17%

Despite 5% decrease in revenue.

According to CIMB, increased contributions from higher margin businesses, software licensing as well as maintenance and enhancement services, lifted overall gross margins to 63% from 57% in 3Q12.

Hence, despite the 5% yoy decrease in 9M13 revenue, 9M13 gross and net profits rose 15% and 17% yoy respectively.

Here's more from CIMB:

The company remained in a net-cash position with strong cash-flow generation. Dividends declared in 9M13 (2 Scts) already exceeded FY12’s 1.9 Scts. 

While the US and European economies may still be uncertain, the financial vertical in Asia teems with opportunities for Silverlake.

The group had secured another two contracts in 3Q13. According to our channel checks, it is working hard to secure two large contracts with one possible award in 2HCY13 and the other in CY14.