SGA Solutions Achieves Profit Turnaround: "Will Continue to Realize Gains"

[Asia Economy Reporter Hyungsoo Park] Integrated security specialist SGA Solutions succeeded in turning a profit in the second quarter of this year.

SGA Solutions announced on the 18th that its separate sales in the second quarter reached 7.952 billion KRW, a 16.23% increase compared to the same period last year. Operating profit turned positive at 1.05 billion KRW. On a consolidated basis, sales amounted to 16.711 billion KRW, and operating profit was 85 million KRW. Sales increased by 1.67% year-on-year, and operating profit turned positive.

An SGA Solutions official said, "Despite the security industry's seasonal off-season in the first half, we achieved strong results by returning to a profit trend," and added, "We expect to continue this performance improvement trend."

SGA Solutions explained that the turnaround to profitability was due to ▲ increased security demand driven by changes in work environments and government policies ▲ restructuring of the business portfolio focused on profitability ▲ improved performance of subsidiaries.

Looking at performance by segment, product sales increased by 26% compared to the same period last year. Sales of security solutions, including SGA Solutions’ core server security solutions, increased, driving performance improvement. As non-face-to-face services expanded, demand for IT systems incorporating new technologies such as artificial intelligence (AI) and cloud increased. With growing security threats, demand for related products also rose. Since recording losses last year, SGA Solutions has restructured its business to improve profitability by focusing on core solutions and reducing inefficient costs.

Subsidiaries of SGA Solutions also showed improved performance. Axis Investment, a new technology finance operator, expects increased gains from investment funds and securities valuation due to the stock market boom.

Blockchain specialist SGA BLC demonstrated its technological capabilities by participating in blockchain public-leading projects with the Ministry of Foreign Affairs, Ministry of Environment, and Ministry of Trade, Industry and Energy. Utilizing biometric authentication (FIDO) platforms and blockchain technology, it continues to achieve steady results in the next-generation authentication market. Benefits from the revision of the Electronic Signature Act are anticipated.

SGA Embedded plans to change its name to SGA Cloud Service next month and expand its cloud-based business as a Cloud Solution Provider (CSP) for Microsoft.

With large-scale next-generation public projects expected to be ordered within the year, SGA Solutions is forecasted to maximize synergy effects with its largest shareholder, SGA, while generating profits. SGA, the maintenance operator of the National Education Information System (NEIS), is gaining attention as a beneficiary in the next-generation public IT business sector. Following the mandatory policy for separate software procurement, SGA Solutions expects group-wide mutual growth.

Choi Young-cheol, CEO of SGA Solutions, said, "The results of new businesses invested in as part of security transformation are becoming visible," adding, "Starting with new product launches in the second half of the year, we will continue to expand our lineup and increase sales."

He continued, "The second half is an important period where the traditional peak season of the public IT market coincides with the full-scale implementation of the Digital New Deal policy," emphasizing, "We will boldly target the market."