The Hindu Business Line : Megasoft posts loss on Rs 12.8-cr write-off

MEGASOFT Ltd has reported a net profit of Rs 3.6 crore on revenues of Rs 25.9 crore for the quarter ended December 2004 as compared to a net loss of Rs 2 crore on revenues of Rs 15.8 crore for corresponding quarter previous year.

For the year ended December 2004, the company reported a net loss of Rs 6.4 crore on revenues of Rs 84.9 crore against a net profit of Rs 1.7 crore on revenues of Rs 79.7 crore for previous year.

In line with the company's strategic transition from a mid-sized information technology services company to an Internet Protocol (IP)-led technology company, Megasoft reviewed its inventories and overdue debtors and has taken a one-time write-off of Rs 12.8 crore during the year resulting in a net loss of Rs 6.4 crore, according to a press release.

A major part of the growth was attributable to the growth in telecom business, which came into Megasoft's fold consequent to the acquisition of the Hyderabad-based Xius Ltd, an IP led telecom product company.

The product business of the company has already contributed close to 20 per cent of the increase in top line, the release said.

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