Silverlake Axis

Silverlake Axis is halted pending for clarification announcement.

I hope the CEO won't give some philosophy announcement like
"Solving exceptions = Earning money
Being good Exception solvers = Clients coming to knock the door.
etc etc.."

(14-01-2015, 12:19 PM)hongonn Wrote: Silverlake Axis is halted pending for clarification announcement.

I hope the CEO won't give some philosophy announcement like
"Solving exceptions = Earning money
Being good Exception solvers = Clients coming to knock the door.
etc etc.."

The clarification to the analyst report is here.

-------
The Company wishes to clarify that, in the normal course of business, the Company responds to
requests for proposals from customers and potential customers on a continual basis. Based on
market information, analysts are generally aware that before the announcement of the Proposed
Merger last year, RHB Bank was evaluating the possibility of replacing their core banking IT and was
in discussions with parties including the Company as one of the software vendors in this industry.

http://infopub.sgx.com/FileOpen/Silverla...eID=331320

I think for silverlake it goes beyond this deal. what shareholder also need to worry about is the depreciating RM. Nearly all their assets and revenue/profit/dividend is in rm but share price is in S$. Surely this has to be factored in.

(14-01-2015, 04:24 PM)Jacmar Wrote: I think for silverlake it goes beyond this deal. what shareholder also need to worry about is the depreciating RM. Nearly all their assets and revenue/profit/dividend is in rm but share price is in S$. Surely this has to be factored in.

Reported currency might not be necessary the transaction currency of the company. IIRC, the company transaction currencies are mainly in SGD/USD, albeit the reported currency is RM.

(not vested)

(14-01-2015, 05:11 PM)CityFarmer Wrote:

(14-01-2015, 04:24 PM)Jacmar Wrote: I think for silverlake it goes beyond this deal. what shareholder also need to worry about is the depreciating RM. Nearly all their assets and revenue/profit/dividend is in rm but share price is in S$. Surely this has to be factored in.

Reported currency might not be necessary the transaction currency of the company. IIRC, the company transaction currencies are mainly in SGD/USD, albeit the reported currency is RM.

(not vested)

How can billing/transaction not in RM when contract won is in RM;

Silverlake Secures Two New Software Upgrading Contracts
Totaling Approximately RM40.0 Million

(15-01-2015, 12:27 AM)Jacmar Wrote:

(14-01-2015, 05:11 PM)CityFarmer Wrote:

(14-01-2015, 04:24 PM)Jacmar Wrote: I think for silverlake it goes beyond this deal. what shareholder also need to worry about is the depreciating RM. Nearly all their assets and revenue/profit/dividend is in rm but share price is in S$. Surely this has to be factored in.

Reported currency might not be necessary the transaction currency of the company. IIRC, the company transaction currencies are mainly in SGD/USD, albeit the reported currency is RM.

(not vested)

How can billing/transaction not in RM when contract won is in RM;

Silverlake Secures Two New Software Upgrading Contracts
Totaling Approximately RM40.0 Million

Hi jacmar, I was piqued by your question so I did a search on silverlake sgx announcements all the way until 2010. To put it in a nutshell, silverlake wins contracts with multiple type of currencies depending on customer location and possibly negotiation factors. The announcement you highlighted mentions the word "approximately", likely for the purpose of considering currency exchange fluctuations. (the latter customer was based in brunei, for purposes and intents, it could be in Sgd since singapore and brunei have a currency peg)

In addition, I checked silverlake ar2014, point 31 on page 130, it does show sensitivty analysis of sgd, myr ,thb, usd amd jpy. So likely these are the currencies which silverlake wins its deals in.

For purposes of interest, I reckon a weak ringgit is positive for silverlake overseas ventures and neutral for local deals. The bulk of their cost would be on personnel costs, having strengthen of usd would mean more profits for the company, assuming their core personnel costs remains in malaysia (ringgit).

Sent from my D5503 using Tapatalk

(15-01-2015, 12:27 AM)Jacmar Wrote:

(14-01-2015, 05:11 PM)CityFarmer Wrote:

(14-01-2015, 04:24 PM)Jacmar Wrote: I think for silverlake it goes beyond this deal. what shareholder also need to worry about is the depreciating RM. Nearly all their assets and revenue/profit/dividend is in rm but share price is in S$. Surely this has to be factored in.

Reported currency might not be necessary the transaction currency of the company. IIRC, the company transaction currencies are mainly in SGD/USD, albeit the reported currency is RM.

(not vested)

How can billing/transaction not in RM when contract won is in RM;

Silverlake Secures Two New Software Upgrading Contracts
Totaling Approximately RM40.0 Million

My thought is probably silverlake converted the contract value to MYR in the press release.

Currency question was brought out in 2013 AGM, Goh replied that the contracts were in either USD or SGD currency. MYR is just reporting currency in the financial report. Money were not exchanged it back to MYR and were kept in their own currency. This should not have any impact on the company operating cash flow even dividends are paid in SGD. (I missed the 2014 AGM and not sure whether got anyone asking the similar question).

(15-01-2015, 12:27 AM)Jacmar Wrote:

(14-01-2015, 05:11 PM)CityFarmer Wrote:

(14-01-2015, 04:24 PM)Jacmar Wrote: I think for silverlake it goes beyond this deal. what shareholder also need to worry about is the depreciating RM. Nearly all their assets and revenue/profit/dividend is in rm but share price is in S$. Surely this has to be factored in.

Reported currency might not be necessary the transaction currency of the company. IIRC, the company transaction currencies are mainly in SGD/USD, albeit the reported currency is RM.

(not vested)

How can billing/transaction not in RM when contract won is in RM;

Silverlake Secures Two New Software Upgrading Contracts
Totaling Approximately RM40.0 Million

I didn't look further to verify. I reckon the RM value might be converted from transaction currency. It is pretty common, since the reporting currency is RM.

(15-01-2015, 01:27 AM)Gregg Wrote: My thought is probably silverlake converted the contract value to MYR in the press release.

Currency question was brought out in 2013 AGM, Goh replied that the contracts were in either USD or SGD currency. MYR is just reporting currency in the financial report. Money were not exchanged it back to MYR and were kept in their own currency. This should not have any impact on the company operating cash flow even dividends are paid in SGD. (I missed the 2014 AGM and not sure whether got anyone asking the similar question).

The company is registered in Bermuda, listed in Singapore and with a principal place of business in Malaysia. With ~50% of its revenue from Malaysia, it makes sense to report in RM but it becomes non-relevant when your business prices it in USD with their msian customers?

Yes, was in 2013 AGM. Goh did stated that most of the non-Malaysia deals are booked in S$. They are kept that way and pay out in Dividend wihtout the need to pay for any conversion fee.

So overall, the drop in MR should be positive since most of the cost are in Malaysia.