Friday, January 24, 2003
Indian software major Hughes Software has decided to take
on an additional 120 people over the next three months as
part of its strategy to ramp up back-end operations.
The parent Hughes Netwrok Systems (HNS) is also hiking employee
numbers at its Japan operations by converting its sales and
support office there to a branch office.
Hughes Software Systems (HSS) (the Indian company), in fact,
has undergone some sort of restructuring in the past year
in order to re-focus its operations from serving telecom equipment
companies to telecom service providers, considering that the
telecom equipment sector has been the worst-hit segment in
the ongoing recession.
Also in order to de-risk business it entered the business
process outsourcing space and is planning a foray into the
already crowded banking, financial sevices and insurance (BFSI)
software segment.
HSS is a subsidiary of Hughes Network System (HNS), formerly
a unit of Hughes Electronics Corporation (HE). HNS is a networking
company, dedicated to providing products and services to build
and operate digital communication networks worldwide. HNS
is the world leader in VSAT-based
networks. HE is a world leader in the design, manufacture
and marketing of advanced electronic systems. It was a wholly
owned subsidiary of General Motors Corporation, US. HNS-India
Inc is the principal shareholder in HSS. The current promoter
holding in HSS is 55.57%, the same as that on 30
September 2002.
On 29 October 2001, General Motors had entered into an agreement
to sell HE to EchoStar Communications Corp for $25.8 billion
in cash and shares. General Motors and HE together with EchoStar
Communications had signed definitive agreements that provide
for the spin-off of HE from GM and the merger of HE with EchoStar.
However, the EchoStar bid has failed and HSS' parent continues
to be HNS. The management clarified that the failure of the
bid will not affect the company adversely in future.
For the third quarter ended 31 December 2002, HSS posted
a 5% drop in sales to Rs 57.1 crore. PAT was down 21% to Rs
11.4 crore.
Last updated : February 2, 2004
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