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COVID-19 closes iSynergy (ASX:IS3) offices worldwide

Technology
ASX:IS3      MCAP $1.824M
27 March 2020 11:28 (AEST)
iSynergy Group (ASX:IS3) - CEO, Lawrence Teo

Sourced: Top 10 of Malaysia

IT company iSynergy (IS3) has announced that it is closing all of its corporate offices worldwide, in response to COVID-19.

The company is taking precautionary steps suggested by the World Health Organisation, to protect employees, clients, affiliates and partners.

All iSynergy staff will work remotely from home until the pandemic subsides. Fortunately, the nature of the IT industry should allow the company to function across a geographically distributed network.

Company employees will liaise with current and potential clients virtually, in order to lower the risk of infection. iSynergy has also reduced the risks of face-to-face interaction by cancelling all of its signature events.

The company has not yet reported experiencing any negative impacts from the coronavirus, but is already preparing for it.

In the first two months of 2020, iSynergy’s written new affiliate sales order grew by approximately 50 per cent. The company’s affiliate marketing platform has been improving, with online sales still growing.

However, the company predicts that sales orders will soon begin to decrease, potentially affecting overall revenue in the coming months.

In order to compensate for COVID-19’s potential impacts, iSynergy is currently re-evaluating its operating cost base. The company’s main priority, besides protecting its people, will be to reduce costs and capital expenditure.

iSynergy currently has approximately $5.4 million of cash on hand, and is making adjustments to preserve all available funds.

As a result of economic uncertainty brought on by COVID-19, the company can not provide guidance for 2020’s financial year.

iSynergy’s share price remains steady, and is trading for $0.10 per share at 10:04 am AEDT.

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