Formis ... Aug 09

FORMIS Resources Bhd (Formis) has secured a RM69.84 million contract to supply, install and commission an integrated e-courts system for Malaysia's courtrooms, called the 'e-Kehakiman' system.

The contract covering court rooms in Selangor, Kuala Lumpur and Putrajaya, Johor, Penang and Sarawak, requires Formis to design and set up three systems, encompassing e-filing, case management and queue management system and court recording and transcription. The company has one year to complete the implementation of the system.

The project is expected to contribute positively to earnings of its current financial year ending March 31, 2010; and in the longer-term. The project cost will be funded by internally generated funds and bank borrowings.

For the financial year ended March 31, 2009, Formis achieved a profit before tax of RM15.6 million, an increase of 256 per cent from the previous financial year.

Going Forward … It is bidding for another RM1 billion worth of jobs.

The project will help add to its recurring income stream that currently stands at Rm60 million per annum from maintenance and service contracts for systems installed by the group.

Maintenance of hardware is generally about 10% to 12% and for its software, it is about 15% of the contract sum per month. Formis is to guarantee that the e-courts system functions to order for at least three years, subject to renewal.