Financials

Condensed Consolidated Income Statement For The Second Quarter Ended 30 June 2008

The figure have not been audited

Note INDIVIDUAL QUARTER 3 MONTHS PERIOD ENDED CUMULATIVE QUARTER 12 MONTHS PERIOD ENDED 30 JUNE 2008 30 JUNE 2007 30 JUNE 2008 30 JUNE 2007   RM RM RM RM
Revenue		2,508,687	4,141,698	7,401,799	7,519,460
Cost of Sales		(954,321)	(1,858,540)	(3,960,190)	(2,788,557)
Gross Profit		1,554,366	2,283,158	3,441,609	4,730,903
Other Income		83,237	42,780	85,161	76,960
Administrative Expenses		(1,767,065)	(1,206,660)	(3,215,185)	(2,072,600)
		(129,462)	1,119,278	311,585	2,735,263
Finance Cost		(2,375)	(3,310)	(4,839)	(14,674)
Profit before tax		(131,837)	1,115,968	306,746	2,720,589
Taxation		(36,498)	(40,000)	(72,996)	(40,000)
Profit for the period		(168,335)	1,075,968	233,750	2,680,589
Attributable to:
Equity Holders of the company		(168,335)	1,075,968	233,750	2,680,589
Minotiry interest		-	-	-	-
		(168,335)	1,075,968	233,750	2,680,589
Earnings per share attributable to ordinary equity holders of the parent
- Basic (sen)	B12	(0.17)	1.08	0.23	2.68
- Diluted (sen)	B12	N/A	N/A	N/A	N/A

Note:
The unaudited condensed consolidated income statements should be read in conjunction with the notes to the interim financial report and the audited financial statements of the Group for the financial year ended 31 December 2007.

Condensed Consolidated Balance Sheets As At The Second Quarter Ended 30 June 2008

The figures have not been audited

	UNAUDITED AS AT 30 JUN 2008	AUDITED AS AT 30 JUN 2007
	RM	RM
ASSETS Non-current assets
Property, plant and equipment	6,162,584	6,816,753
Goodwill on consolidation	6,636,489	6,636,489
Intangible assets	33,758	41,850
Development cost	13,526,853	11,880,132
	26,359,684	25,375,224
Current assets
Inventories	179,600	179,600
Work-in-progress	111,210	903,080
Trade receivables	7,575,607	6,316,486
Other receivables	263,859	114,804
Amount owing by related company	528,674	32,787
Fixed deposits	-	1,000,000
Cash and bank balances	811,260	1,025,503
	9,470,210	9,572,260
TOTAL ASSETS	35,829,894	34,947,484
EQUITY AND LIABILITIES Equity attributable to ordinary equity Holders of the company
Share capital	10,000,000	10,000,000
Share premium	8,360,312	8,394,528
Foreign currency translation reserve	(28,407)	(9,315)
Retained earnings	15,624,450	15,390,699
Total equity	33,956,355	33,775,912
Non-current liabilities
Hire purchase payables	231,104	235,023
Deferred tax	48,384	48,384
	279,488	283,407
Currect liabilities
Trade payables	838,239	259,188
Other payables and accruals	626,092	457,558
Amount owing to a related company	50	-
Hire purchase payables	36,582	69,246
Tax payable	93,088	102,173
	1,594,051	888,165
Total liabilities	1,873,539	1,171,572
TOTAL EQUITY AND LIABILITIES	35,829,894	34,947,484
Number of ordinary shares at RM0.10 sen per each	100,000,000	100,000,000
Net Assets per share attributable to ordinary equity holders of the parent (sen)	33.96	33.78

Note:
The unaudited condensed consolidated income statements should be read in conjunction with the notes to the interim financial report and the audited financial statements of the Group for the financial year ended 31 December 2007.

Review of Performance

For the 6 months period under review, the Group recorded a revenue of RM7.40 mllion against RM7.52 million achieved in the corresponding 6 months period of the preceding year due to the consolidation exercise resulting from the anticipated launch of HRDPower.net R2, the latest version of the award winning product HRDPower.net?. The earlier versions need to be phased out as it had some compatibility issues with current Operating System and dot.net frameworks. SMR HR Technologies Sdn Bhd and SMR HR Services Sdn Bhd continue to be the contributing companies in the group while the overseas operations,except Singapore continue to make losses as they have yet to generate sufficient sales on their own to cover operating expenses.

The group only recorded a Profit before tax ("PBT") of RM0.23 million against RM2.68 million recorded in the corresponding period of the preceding year as gross profit margins continue to drop from 62.9% to 46.5% due to continued high costs incurred of test sites and sales supporting activities in US, which have not converted to any revenue yet.

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