KUALA LUMPUR: VSTECS Bhd today clarified that revenue and profits from distributor arrangements depend largely on its sales performance and not determined upfront upon appointment.
In a filing with Bursa Malaysia Securities Bhd, the company explained its business arrangement with Amazon Web Services (AWS) as its first distributor in Malaysia, after the news sent its share price soaring.
News of the distributorship agreement, sent its share price hitting a 52-week high of RM3.58 yesterday.
It pared some of its gains today, closing 3.6 per cent lower at RM3.45 a share.
VSTECS said its appointment as a distributor by international principals from time to time is in the ordinary course of our business as an information communication technology (ICT) distributor.
Its sales performance as AWS distributor will depend on the sales performance of specific products or solutions covered under the distributorship arrangements.
VSTECS services include computing, storage, databases, analytics, networking, and application services to enterprises in the private and public sectors in Malaysia.