IPVG net profit hits P300 million in January-March

MANILA, Philippines - Technology firm IPVG Corp. reported a net income of P300 million for the first quarter of 2011, a substantial increase from the same period last year.

In a statement, the company said consolidated revenue stood at P 367.51 million, representing a 15-percent increase from a year ago. Gross margin also increased from 57 percent to 62 percent.

IPVG rise in net income can be attributed to the sale of a majority stake in Prolexic Technologies Inc. as well as strong financial results from its subsidiaries. Last March, IPVG sold 69 percent of its equity stake in its network securities subsidiary, Prolexic, for $13.86 million to international growth equity investment firm, Kennet Partners.

Prolexic’s net income for the period amounted to P26 million, an increase of 53 percent from last year. Revenues also totaled P188.35 million, from P173.45 million in 2010.

Another source of growth was the strong operating performance of the company’s listed data center subsidiary IP Converge Data Center Inc. IP-Converge posted a first quarter net income of P22.08 million, or a 14-percent increase over the same period in 2010. It also earned revenues of P130.65 million in the three-month period compared with P127.02 million for the same period in 2010.

Gross profit of IP-Converge likewise increased by P2.29 million, a five-percent growth from last year. The favorable showing is credited to higher connectivity sales, and the continuously growing demand in premium data center space.

“Our strong performance is evidence of the value we have created in our subsidiaries,” said IPVG CEO Enrique Gonzalez. “We have secured strong strategic and financial partners in two major business lines (BPO and network security), and we expect to replicate this success in our other subsidiaries at the right time. 2011 is certainly our best year thus far.”

The group’s positive first quarter performance makes it well positioned to pursue future projects and enter into strategic partnerships that will gear the company towards expansion and development, he added.

One of the company’s subsidiaries, IP E-Game Ventures Inc. has also completed a series of exciting transactions including: the acquisition of Netopia, the number one Internet cafe chain in the country, and the sale of its stake in First Cagayan Converge Data Center Inc. for P120 million. IP E-Games is poised to make several strategic acquisitions to complete its digital consumer platform, which is already considered one of the largest in the country next to the likes of Facebook.