Stratech profit flat at $1.2mln

iFerret's Innovation Award at ATC Global 2010 makes it a key driver to company's future growth.

Singapore Exchange mainboard-listed Stratech Systems Limited announced a net profit of S$1.2 million on a revenue of S$13.9 million for the financial year ended 31 March 2010 (FY2010) comparable to that of S$1.2 million on a revenue of S$15.2 million for the previous financial year (FY2009), according to a Stratech report.

The Group registered a gross profit of S$11.2 million, a 12 percent growth from the S$10.0 million recorded for FY2009.

New business in FY2010 accounted for S$3.8 million (FY2009: S$7.3 million) whilst existing contracts contributed S$10.1 million (FY2009: S$7.9 million) to the revenue. International sales contributed 32 percent (FY2009: 35 percent) of total revenue.

Salaries and related costs decreased from S$5.6 million to S$4.6 million, that is, by 17 percent compared to FY2009 on account of lower headcount and higher product development efforts. Other operating expenses decreased by 21 percent from S$5.0 million to S$3.9 million.

Net cash flow from operating activities contributed S$4.1 million to the Group's cash and bank balances in FY2010 compared to S$0.1 million used in operating activities in FY2009.

The significant events during the year include:

• iFerret™, Stratech’s intelligent Airfield/Runway Surveillance and FOD (Foreign Object and Debris) Detection System, was commissioned at Singapore Changi Airport.
• Stratech secured a sub-contract to design, co-develop and implement a TV Ordnance Scoring System (TOSS) for the Republic of Korea Air Force (ROKAF). TOSS will be powered by Stratech’s state-of-the-art Super BullsEye® II Advanced Weapons Scoring System and is to be integrated with an Electronic Warfare Training System (EWTS) to be delivered to ROKAF.
• Stratech received a purchase order for the deployment of iFerret™ at an airport in Europe.
• Stratech was awarded a contract by the Maritime and Port Authority (MPA) of Singapore to design, implement and maintain the next-generation Shipmast Height Detection System (SHDS).
• Stratech formed a strategic alliance with Itochu Singapore Pte. Ltd. to market iFerret™ in Japan.
• Stratech signed an agreement to form a Joint Venture with Aeronautics Ltd. to target the Unmanned Aerial Vehicles (UAV) market in the Asia Pacific.
• iFerret™ won the Innovation Award at the ATC Global 2010 held in Amsterdam.

The Group remains committed to continue to find ways of unlocking the full potential and value of its intellectual properties. Barring unforeseen circumstances, the Group is cautiously optimistic of its performance for the next financial year.