Thursday, January 17, 2002
Focus on new sectors as company eyes higher growth rates
New Delhi
In an effort to reduce business risk Hughes Software System
(HSS) has decided to enter into the telecom service providers
arena with its turnkey network integration solutions.
The company, which so far was offering its products and services
to telecom equipment manufacturers, is ready to roll out its
new services and has already started pitching for business
in the global market. HSS is alsotalking to telecom operators
in India.
The revenue stream from new services will start only in fiscal
2002-03, said HSS managing director Arun Kumar while talking
to the media after announcing the companys third quarter financial
results.
HSS has also engaged the consulting firm McKinsey to conduct
a market research before deciding to enter the market. HSS
will take up projects to integrate heterogenous network infrastructure
and applications like billing systems for the telecom operators,
said Mr Kumar adding that a core team was already in place
and would be further expanded in the near future.
The development of new revenue streams was a part of the
companys de-risking strategy, said Mr Kumar adding that the
company would further enter into revenue optimisation solutions
and integration services for forthcoming IP-based networks.
Talking about future business outlook, Mr Kumar said, Customers,
who were holding back on new projects and purchases, have
started talking now, but these indicators are not enough to
be called as a trend.
The future is still hazy and the visibility is also low.
Therefore, we are still cautious about about Q4 performance,
he said.
Mr Kumar indicated that the company is expected to achieve
only 15-17 per cent growth in its revenue for the entire financial
year 2001-02.
He added that a core team was already in place and would
be further expanded in the near future.
The development of new revenue streams was a part of the
companys de-risking strategy, said Mr Kumar adding that the
company would further enter into revenue optimisation solutions
and integration services for forthcoming IP-based networks.
Talking about future business outlook, Mr Kumar said, Customers,
who were holding back on new projects and purchases, have
started talking now, but these indicators are not enough to
be called as a trend. The future is still hazy and the visibility
is also low. Therefore, we are still cautious about about
Q4 performance, he said.
Mr Kumar indicated that the company is expected to achieve
only 15-17 per cent growth in its revenue for the entire financial
year 2001-02. However, the net profit of the company may register
a negative growth this fiscal.
Sales will be in the range of Rs 55.5 to 60.3 crore in the
fourth quarter and Rs 232.4 to 237.2 crore for financial year
2001-02. We expect to make a net profit to the tune of 20
per cent of sales for the financial year, said Mr Kumar.
The results show that the company has done better than the
previous quarter, which is the result of the cost saving initiatives
we had taken, said Mr Kumar. Interestingly, the business contribution
from the parent company, Hughes Network Systems has increased
to 46 per cent of the total business of HSS in the third quarter,
compared to 34 per cent for the corresponding quarter of the
previous year.
Last updated : February 2, 2004
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