MP Technology announced its Quarterly Earnings

MP Technology just released its earnings tonight: Quarterly rpt on consolidated results for the financial period ended 30/11/2006

Quarterly losses totalling 133.274 million!

WOW!!!

Value destruction or what!!

• The group revenue up to the current quarter was RM21.6 million cumulatively as compared to RM110.4 million reported in the preceding year corresponding quarter. The group also posted a loss before tax (“LBT”) of RM144.5 million as compared to RM33.4 million reported in the preceding year correspondence quarter. The drop in performance was mainly attributable to the significant other operating expenses registered during the current financial year which consist of doubtful trade and other collectibles written off, property, plant and equipment and stock written off, provision for doubtful debts, impairment loss on investment in unquoted shares and associates, impairment loss of goodwill, provision for diminution of investment etc. The other operating expenses alone have contributed total loss of RM128.7 million in the current quarter under review.
  
  To the best knowledge of the Directors, no other known item, transaction or event of a material and unusual nature has arisen in the interval between the end of this reported period and the date of this announcement, which have affected substantially the results of the operations of the Group.

And this is what the company said about its prospects:

• The financial year 2006 being the tough year for the Group, seeing significant drop of both annual turnover and margin coupled with loss before tax of RM144.5 million. Besides, negative publicity with regards to the possible financial irregularities further dampened the Group’s effort to bounce during the fourth quarter under review. In view of the major setback in the financial year 2006, new board was formed comprising parties with different expertise to regularize the Group in both operation and financial aspects and new Group Managing Director was appointed as well to turnaround the Group going forward.
  
  In view of the optimistic economic prospect ahead, the management believes the Group would revive its business volume and profitability going forward

Big Mess! Especially when you consider the issues mentioned here: Update on MP Tech

Oh, their auditors resigned Special announcement MP TECHNOLOGY RESOURCES BERHAD ("MPTECH" or the "Company") RESIGNATION OF AUDITORS

And then Default in payment under Practice Note 1/2001

• The Company is now announcing that the financial position of the Company is insolvent.

Got listed via RTO of Kelanamas in 2004. Insolvent by 2007!

Like i said..

Value destruction or what!!