Nexgram slips into the red in 2Q on lower sales

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KUALA LUMPUR (Dec 30): Software developer Nexgram Holdings Bhd, which is controlled by its CEO and managing director Tey Por Yee with a 20.02% stake, slipped into the red in the second quarter ended Oct 31, 2014 (2QFY15), after it posted a net loss of RM6,545 from a net profit of RM1.37 million a year ago, on decreasing sales.

 
Revenue for 2QFY15 dropped 8% to RM24.97 million from RM27.08 million previously.
 
For the cumulative six months to Oct 30, 2014 (6MFY15), Nexgram saw its net profit slumped 49% to RM1.47 million from RM2.9 million in the same period a year ago, while revenue dipped 5% to RM49.2 million from RM52.06 million previously.
 
Nexgram is "cautiously optimistic" on outlook, saying near term prospects appear "satisfactory".
 
It is worth noting that Tey was recently ousted from the board of directors at Protasco Bhd after he failed to remove vice-chairman and managing director Datuk Seri Chong Ket Pen.
 
To recap, Protasco accused Tey and another director - Ooi Kock Aun - of breaching their fiduciary and statutory duties, including the duty to disclose their interest in the PT Anglo Slavic Utama transaction, conspiracy to defraud Protasco and the making of secret profits.
 
Tey and Ooi in turn claimed Chong had made a RM10 million financial gain through an oil and gas deal in Indonesia.
 
Tey also did not seek re-election as an executive director in Malaysia Pacific Corp Bhd (MPCorp) during the group's 42nd annual general meeting today. Tey emerged as a substantial shareholder in MPCorp on July 22 after acquiring 15 million shares or a 5.21% stake.
 
More recently, he was seen trimming his shares in Nexgram. He owned as much as 26.12% of Nexgram as at May 8, but had subsequently reduced his stake to 20.02%.

Nexgram's share has fallen from 14.5 sen on Sept 17 to close unchanged at 7 sen today, giving it a market capitalisation of RM131.79 million.

Meanwhile, even after being thrown out of the board of Protasco, Tey had continued to acquire shares in Protasco. As at Dec 3, he owned 57.521 million shares or a 17.16% stake in the company.