Hughes Software Systems Revises Financial
Guidance
New Delhi, September 14, 2001
Hughes Software Systems Limited (HSS) today announced its
revised financial guidance for FY2001-02. HSS has indicated
the forecast for Income growth to be in the range of 25 to
35 percent. The Profit After Tax is expected to be in the
mid-20s% for FY2001-02 ending March 31, 2002. These estimates
are more in line (than our previous estimates) with the guidance
from the Tier 1 companies in the Indian software industry.
Announcing this new guidance, Arun Kumar, President and Managing
Director of HSS said, "In the last 30 - 60 days, the
overall economic environment has deteriorated globally. United
States, Japan, and Europe, which are big markets for the Indian
Software industry, have released data that indicates the slowdown
in their economies is getting worse. Communications companies
worldwide have continued to announce downsizing and lower
revised business forecasts. Decision-making has slowed down
significantly with decisions being increasingly moved indefinitely
to the future. The visibility on restoration of our customers'
confidence and the sector's turnaround is unclear. All these
factors have impacted our business in the last two months
and caused us to present this new guidance."
Giving further details, Kumar added, "In line with the
revised guidance, we have started exercising stringent cost
control and are reducing non-essential expenditure. However,
our overall financial position continues to be excellent with
strong balance sheet and cash reserves and continued cash
generation from our operating businesses. With this balance
sheet and our strong list of blue chip customers, we are confident
that we will continue to be a leader in this market."
Talking about the future, Kumar said, "Our strategy
of a mix of Services and Products has served us well, and
we would continue to pursue it vigorously. We are continuing
our R&D efforts in high gear (11 to 12% of Income) and
building new technology in the Next Generation Convergent
Networks space (Voice over Packet and 3G/2.5G). HSS is also
working towards expanding its business by starting to build
services and products for the Service Provider segment (Communication
Applications and OSS). HSS has hired 323 new employees already
this fiscal year, and would continue to hire in the future.
We view the current market condition as a temporary lull and
believe that the communication software sector will regain
its earlier premier position. HSS' relationships with its
customers, many of who are global leaders, continue to be
strong, and we are looking forward to growing at our historic
rates (of about 60%) as soon as the economic environment turns
around."
About Hughes Software Systems (HSS)
Hughes Software Systems Limited, the #1 communications software
company in India, offers a broad range of communications-related
software services, products, and solutions to leading Communication
OEMs and Service Providers around the world.
HSS is a subsidiary of Hughes Network Systems, a unit of
Hughes Electronics Corporation. Rated among the best 5 companies
to work for in India by Hewitt Associates, HSS has a team
of 1600+ world class professionals, who work at its development
centers in India: at Gurgaon, a suburb of New Delhi, and at
Bangalore. With sales and support offices in the US, the UK,
Germany and Finland it is represented throughout Europe, South
America, and Asia to support its global customer base.
Forward Looking and cautionary statements
Certain statements in this release concerning our future growth
prospects are forward-looking statements. All these forward-looking
statements are subject to certain risks and uncertainties,
including, but not restricted to, government action; local
political or economic development in, or affecting, countries
where HSS has operations; technological risks; risks inherent
in the company's growth strategy; dependence on certain clients;
dependence on availability of technical consultants, and other
factors that could cause our actual results to differ materially
from those contemplated by the relevant forward looking statements.
The Company undertakes no obligation to publicly update these
forward-looking statements to reflect subsequent events or
circumstances.
For more information about HSS contact:
Jay Vikram Bakshi
Senior Manager, Corporate Communications
Phone: +91-124-634 6666 Extension 2865
Fax: +91-124-6455100
E-mail: prcontact@flextronicssoftware.com
Last updated : August 5, 2006
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