Financial Daily from THE HINDU group of publications
Friday, Jul 19, 2002
Financial Daily from THE HINDU group of publications Friday, Jul 19, 2002 |
|
|
|
|
|
Info-Tech
-
Software Corporate Results - Software Hughes Soft net down 76% Our Bureau
NEW DELHI, July 18 THE downturn in the global telecom sector continues to take its toll on the Delhi-based telecom software developer, Hughes Software Systems (HSS). The company today announced a 76 per cent drop in its net profit for the first quarter at Rs 4.4 crore as compared to Rs 18.7 crore in the same period last year. Total income of HSS in the period stood at Rs 49.9 crore over Rs 66.6 crore in the corresponding period, the company said in a statement here. The board of directors of the company approved these results at a meeting held in Maryland, USA, the statement said. ``The telecom sector has seen higher than expected downturn in the last quarter. The travel advisories in the last 30-60 days of the quarter impacted certain orders that we were counting on for the quarter. Thus we missed our financial guidance,'' said Mr Arun Kumar, President and Managing Director of HSS. Commenting on the future, Mr Kumar said, ``we expect a continued depression in telecom markets during the current fiscal, making future predictions very difficult." However, he said HSS remained optimistic about the long-term potential of the telecom sector, though the company would limit the research and development spend on new product development. "We also plan to aggressively pursue professional software services in the OEM, TSP and other application segments. We have taken steps to structure our operation according to the expected business outlook,'' Mr Kumar said. HSS diversification strategy to enter and grow the BPO segment is expected to give returns in the longer term, beginning next fiscal, he added. During the April-June quarter of current fiscal, software exports fetched Rs 4.58 crore, down from Rs 6.24 crore in the corresponding period.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|