DVM

I was kinda shocked to see the heavy promotion made by DVM Bhd on today's business press.

The Star had one piece on it: DVM’s broadband service to go international
The Business Times carried Bernama's write-up: DVM Tech to export Genico solution

So full of potential isn't it?

The Bername piece stated the following..

He said the company, which has four subsidiaries with activities in the areas of systems integration, outsourcing services, software research and development as well as technology solutions, has invested RM7 million in research and development of the products in 2002 to meet the requirements of the international telecommunications industry.

Invested rm7 million in R&D mah... so must be geng, tiok boh?

Soooooo i was wondering.... how was this company doing?

The Star had only this.

Listed on the Mesdaq market early last year, DVM, which specialises in developing and implementing strategic customer focus communications technology solutions for medium to large organisations, achieved RM11mil in turnover for its financial year ended Sept 30, 2005.

Achieved a sales turnover of rm11 million wor.

Err... make how much ar?

Net profit how much ar?

Why so shy? Why no say?

The Bernama article mentioned nothing. Zilch!

Hmmm.... sounds strange.... so i decided to click and there.... to 8 lah...

Found that DVM was listed Jan 2004.

The very first meaningful quarterly announcement...

Quarterly rpt on consolidated results for the financial period ended 31/3/2004

Here is what they wrote in their earning notes..


DVM was listed on the MESDAQ Market of Bursa Malaysia Securities Berhad (“Bursa Malaysia”) on 2 January 2004. Hence, no comparative figures were available for the previous financial period ended 31 March 2003.

TURNOVER AND PROFIT AFTER TAX (“PAT”)

For the second quarter ended 31 March 2004, the Group achieved a turnover of RM1.245 million, which was 70% lower compared to first quarter ended 31 December 2003. The Group recorded a net loss of RM0.497 million compared with the previous quarter’s net profit of RM0.105 million.

The deterioration in turnover was the result of slow revenue recognition from delayed project implementations and tendered projects were delayed in award. The decline in profits for second quarter compared to the first quarter was mainly attributable to higher operational overheads following increased staff costs and expenses of the annual general meeting and legal fees during the quarter.

Listed in Jan 2004... May 2004 announces they are losing money. Sibeh geng hor!

Now if that is not bad enough, comes Aug 2004, there was this posted on the daily Edge...

11-08-2004: DVM targets 20% annual growth

Let me reproduce some quotes.

Mesdaq-listed DVM Technology Bhd is aiming for a 20% annual growth in net profit over the next five years via new products development, features enhancement in existing products and new market ventures.

For the first six months to March 31, 2004, the company posted a net loss of RM392,000 on the back of RM5.48 million in revenue. The loss was due to lower revenue and higher operational costs.

Aiming for 20% growth wor!

What about the fact they lost money so soon after being listed?

And naturally they were querried: ARTICLE ENTITLED: "DVM TARGETS 20% ANNUAL GROWTH

Anyway a year later after making such bold promotions in the press, here is DVM quarterly earnings.

Quarterly rpt on consolidated results for the financial period ended 30/6/2005

Sales 1.271 million.
net LOSS 6.640 million!

Shocking?

Where was the "AIMED" 20% growth?

All the minority investors got was a shocking LOSS of rm6.640 million!!!

And on Nov 30th 2005, it announced its quarterly earnings again.

Sales 1.269 million.
Net LOSS 2.331 million.

Now... what do you think of such companies being listed on the MESSdaq?