ECSB secures RM30 mil deal for network infrastructure

Posted: April 15th, 2010 | Filed under: Technology | No Comments »

Main Market debutant, ECS ICT Bhd (ECSB), has secured a RM30 million network project from YTL Communications Sdn Bhd (YTL Com).

The project was secured via its unit, ECS Pericomp Sdn Bhd, which has teamed up with global networking giant Cisco Systems Inc, to supply the network infrastructure for YTL Com’s 4G WiMAX broadband service rollout nationwide.

It was reported that YTL Com is planning to rollout the service in July.

“The RM30 million network project is ECSB’s single largest enterprise systems contract for this year,” its Managing Director Foo Sen Chin told a press conference after the listing ceremony, here Thursday.

The company’s stock opened at a premium of six sen at RM1.52 over the offer price of RM1.46. There were 5,090 lots traded. The share was traded at RM1.48 after 15 minutes.

Foo said the contract entails ECSB purchasing Cisco products from multiple factories worldwide, and providing services for shipping, importing, staging and delivery to YTL Com for its nationwide implementation.

ECSB is a leading information and communications technology (ICT) distribution hub in Malaysia. It has three core businesses, namely, enterprise systems, ICT services and distribution.

Foo said ECSB is also looking forward to supply network infrastructure for the other three WiMAX players, Green Packet Bhd, Asiaspace Sdn Bhd and REDtone International Bhd, through the knowledge acquired from the YTL Com project.

On outlook for the ICT industry, he said the company is optimistic over it, adding that ECSB aims to grow faster than the industry rate, which is predicted at around six per cent this year.

Asked whether the strengthening ringgit is affecting ECSB, Foo said 70 per cent of the company’s products are purchased in the local currency.

The ringgit was quoted at 3.1850/1880 as at mid-day today.

On the US dollar’s fluctuations, Foo said it would also not have any effect as the company had a forward contract to book the dollar at a fixed exchange rate.

ECSB pays around US$10 million a month to vendors like Cisco, Apple, Microsoft and IBM.

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