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Bangalore , Dec. 15

COMPUDYNE Winfosystems Ltd, which is planning to restructure its IT business, is weighing options to foray either into business process outsourcing (BPO) or IT-enabled services.

This new foray, likely to be finalised by mid-January, would be in collaboration with the US-based Logistic Solutions Inc, said Mr S.S. Dahiya, Chairman-cum-Managing Director, Compudyne.

The company was also likely to offload some equity in favour of Logistic Solutions, he said adding, "The quantum would be finalised in January".

The board of Compudyne had recently approved the company's proposal to expand its range of activities.

"We want to utilise our additional infrastructure which can accommodate about 200-300 people and this new foray would help us in doing that," he added.

The company, which took a major beating in the aftermath of September 9/11 attacks two years ago, had been unable to recover.

Its software business was the most affected while orders kept trickling in for its digital multimedia business, mainly from Bollywood and Hollywood.

"Lower margins and delayed payments especially from Bollywood are still a cause for concern for us," he added.

Meanwhile, the company was looking at raising Rs 15 crore through a rights issue by February and had appointed Munoth Securities as the merchant banker, Mr Dahiya said.

Compudyne, which made a loss of Rs 6.74 crore on revenues of Rs 13.58 crore for the year-ended March 31, 2003, is eyeing a turnover of Rs 25 crore in 2004-05.

The company expects bulk of the targeted revenues for the next fiscal to come from the proposed new initiatives.

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