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Al Moammar Information Systems Co. announces its Interim Financial Results for the Period Ending on 2020-03-31 ( Three Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 228.04211.227.963318.23-28.341
Gross Profit (Loss) 37.9630.5724.17464.29-40.955
Operational Profit (Loss) 21.9218.2620.04341.45-47.117
Net Profit (Loss) after Zakat and Tax 16.9311.7244.45336.89-54.106
Total Comprehensive Income 18.0212.9439.25834.89-48.351
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (after Deducting Minority Equity) 256.14209.0822.508
Profit (Loss) per Share 1.060.73
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to Al Moammar Information Systems Company (MIS) has delivered positive results during Q1-2020 where the Net Income reached SAR 18.02M in comparison to SAR 12.49M in the similar period during Q1-2019. Following is a brief explanation:

Revenue from Contracts: MIS has posted a quarter on quarter overall revenue growth of 7.96% which is attributed to a strong backlog carried forward and the continuing growth of new orders during the reporting period which brings the increase in revenues.

Sale of Services, maintenance & manpower amounted to SAR 106.1M in the current quarter versus SAR 138.5M in the similar period of previous year registering a drop of 23%.

Sale of software license amounted to SAR 32.9M in the current quarter versus SAR 29.6M in the similar period of previous year registering a growth of 11.6%.

Sale of hardware amounted to SAR 88.9M in the current quarter versus SAR 43.2M in the similar period of previous year registering a growth of 106%.

Gross Profit: MIS posted a gross profit of SAR 37.95M in the current quarter versus SAR 30.57M in the similar period in previous year, registering a growth of 24% YoY. This is attributed to the healthy topline in addition to the improvements in segment gross margins.

The overall gross margin registered during the current quarter is 16.6% versus 14.5% in the similar period of previous year.

Gross profit from sales of services, maintenance & manpower amounted to SAR 16.3M in the current quarter versus SAR 19M in the similar period of previous year registering a drop of 13.8%.

Gross Profit from sale of software license amounted to SAR 7.6M in the current quarter versus SAR 5.8M in the similar period of previous year registering a growth of 29.6%.

Gross Profit from sales of hardware amounted to SAR 14M in the current quarter versus SAR 5.7M in the similar period of previous year registering a growth of 143.8%.

Selling & marketing expenses were SAR 3.2M in the current quarter versus SAR 2.7M in the same period of previous year, registering a increase of 18%. Such an increase is attributed to the general salary increase and provision for sales commission.

General & administration expenses were SAR 12.8M in the current quarter versus SAR 9.6M in the same period of previous year, registering an increase of 34%. This is mainly due to the general increase in salary increase for staff which was effected during April 2019 and hence the effect was not felt during Q1-2019.

Finance Cost amounted to SAR 3.6 Million in the current quarter versus SAR 6.5M in the same period of previous year, registering a drop of 44%. This is mainly attributed to a 45% reduction in the monthly SIBOR rates during the respective quarters despite the fact that there was no significant change in the debt outstanding position at the end of respective quarters; Q1-2020: SAR 312M, Q1-2019; SAR 313M.

Net Income (before adding comprehensive income) for the current quarter was SAR 16.9M versus SAR 11.7M during the same period in the previous year. This is mainly due to the general increase in the Revenue from Contracts, improved segment gross margins.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Decrease in Net Profit for current quarter compared previous quarter is attributed to :

- Sales revenue decreased by 28.3% in the current quarter. During the previous quarter the company received certain high value deals including that of providing Software licenses, Hardware Items and Implementation Services which were possible to be delivered in the same quarter thereby enabling the company to recognize sizable revenues.

- During the previous quarter the company delivered certain implementation services for customers which were delivered by our insource team, thereby enabling the company to post better gross margins.

The above factors which pushed higher sales revenue and gross margin during the previous quarter had a direct impact on a higher resultant net profit. However, in comparison, during the current quarter the company has recognized revenue from the backlog and new orders received in Q1 2020 based on the implementation of milestones achieved and signed off by customers.

Basis of the External Auditor's Opinion Unmodified opinion
Reclassification of Comparison Items There has been reclassification in some accounts to comply with IAS 1 - Presentation of Financial Statements. Certain prior year amounts have been reclassified to conform with the presentation in the current year.
Additional Information There is a difference of SAR. 0.22M in our provision for Zakat as per the reviewed FS in comparison to the estimated financial results announced earlier.

The provision for Zakat as per reviewed FS is SAR. 1.46M; however the provision computed by management SAR. 1.24M due to the impact of the updated rates introduced by GAZT.

The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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