Thursday, August 07, 2003
CMMI Level 5 grades process maturity in accordance with the
new quality standards of SEI CMMI
Hughes Software Systems has announced that it has been assessed
on Capability Maturity Model Integration (CMMI) Level 5, as
defined by the software engineering institute (SEI), Carnegie
Mellon University. With this certification, Hughes Software
joins the select band of companies worldwide
to achieve the highest level of process maturity in accordance
with the new quality standards of SEI CMMI.
HSS was incorporated on 13 December 1991. It is engaged in
the development of packaged software, providing share consultancy
services and other ancillary products and services primarily
aimed at the telecommunications industry. HSS is focused on
the telecom sector and derives more than 53% of
its revenues from the wireless segment. However, the company
is feeling the pinch of the sluggishness in the telecom sector
globally.
Therefore, in order to de-risk its business and create added
opportunities, HSS has decided to enter into the business
process outsourcing (BPO) segment. This will be started as
an independent operation. HSS is also diversifying its revenue
streams and is working currently for a foray into
the banking, financial services, insurance (BFSI) segment.
In a major development on 14 July 2003, Australian media
giant News Corp, Mauritius-based HNSM and USA-based Hughes
made an open offer to the shareholders of Hughes Software
to acquire 20% stake in the company at a price of Rs 232,
a 17.4% discount to the current stock price of Rs 281. The
offer will open on 20 August 2003 and close on 18 September
2003.
The offer follows the global acquisition of 19.8% stake in
HSS' parent Hughes by News Corp from General Motors. News
Corp has also decided to acquire an additional 14.2% stake
in Hughes from the latter's shareholders. With the open offer,
News Corp would own 34% of the shares of Hughes.
For the first quarter ended 30 June 2003, HSS reported a
massive 245.45% rise in net profit to Rs 15.2 crore compared
to Rs 4.4 crore in the corresponding period of the previous
year. Total income increased 57% to Rs 78.3 crore from Rs
49.9 crore in JQ 2002.
The company also came out with a future guidance along with
its results for Q1. For FY 2003-04, the company has projected
a sales growth at 55-60%. Profit after tax is expected to
grow 60-70%, a revision from the earlier forecast 40-45%.
The company has even given an upbeat guidance for the next
quarter. For Q2 ending 30 September 2002, the company sees
a growth in sales of 55-60% over the corresponding quarter
of the previous year. PAT is expected to grow 90-100% over
the corresponding quarter of last year.
As on 30 June 2003, foreign promoters' held 55.44% stake
in HSS, while the public and institutions (including FIIs)
held 15.93% and 11.14%, respectively.
Last updated : February 2, 2004
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