geodesicBSE-listed applications company Geodesic Ltd is still negotiating its latest social networking acquisition. In answer to a question by Medianama at the company’s post-earnings conference call, Kiran Kulkarni, MD, Geodesic, said the acquisition is expected to be completed by end of December.

Mundu TV In India

Geodesic is looking to launch Mundu TV on mobile in India first and then take it to international markets. “Telcos like TV as it enhances their value through GPRS usage,” said Kulkarni. Carriers are also interested in its IM, VoIP and TV products, Mundu Radio is also gaining more contracts. “From the IM perspective, we see that telecom converging with IP makes sense. Telcos are trying to make money from IM.  We are seeing traction, taking products from our Uruguay-based subsidiary Interactive Networks Inc and propagating them in India. We are steadily growing in the telco segment,” said Kulkarni.

Chandamama To Launch Interactive Digital Books

Chandamama launched an interactive site in multiple languages in the quarter; it will launch a series of digital books that will see the light of day in next 2 quarters. The books will have interactive pieces which may in the future become in-story games.

Spokn To Launch Soon

On the delay of Spokn, their VoIP product, Kulkarni said, “We are easing out product issues. With such a product, only tech-savvy users know how to use it: grandmas and grandpas do not use VoIP. We are attempting to make UI improvements and accessibility changes to ensure they can.” Spokn will be launched on November 10, 2009.

On The Popularity of Geodesic Products Abroad Rather Than India

For the company, 47% of retail business comes from USA. It has not spent much on marketing in India as very few users have GPRS. “Fact is that 79% of Blackberry users use only voice in India and not its e-mail features,” said Kulkarni. Now, the company has started publishing product catalogues on Indian sites and is focusing on Indian markets now; taking care to get high amount of publicity.

Smartphone Shipments Dropping; Microsoft Losing Out

Shipments of smart phones are dropping especially in Middle East and focus on Android and Linux is growing while Microsoft OS based smartphones are dropping. “We had thought of this and built a product for IM for Android based phones. Shipments to these handset manufacturers commence in the next quarter. We have crossed the bridge with other manufacturers,” said Kulkarni.

Other bytes from the conference call:

  • International SMS product got 300,000 subscribers in the quarter
  • 7000 international clients using Mundu SMS
  • Most of our system integrators give 10-12 licences a year, each licence give an average $160,000-180,000 a year.  Around 25 customers are consistent quarter on quarter.
  • Foreign exchange losses are in the range of Rs. 7.5 crores and others from Rs. 3.5 crores to Rs. 4.5 crores extra.
  • Changed marketing strategy, started connecting with the Chief Financial Officer as against Chief Marketing Officers to sell products.
  • Signed deal with Intel-PCS, Tristar extended its deal for Palm for Latin America market
  • There were 55,000 SMSs being sent per day on average using Mundu SMS
  • Simputer got 6 clients as against 4 clients in quarter
  • Setting up a call centre in Bangalore to take care of support calls for mobile products and Internet Telephony.
  • Employee costs are expected go up 20-25% with recent ramp up to its engineering and senior management teams.
  • The company believes it is making headway in the Middle East and Korea, where GeoAmida is being used in Point-of-Sale transactions, B2B, B2C and C2c transactions.
  • In India, GeoAmida was chosen by the public distribution system of Madhya Pradesh
  • Geodesic’s sole competitor is Symbol. “But our advantage is they are not an Indian company,” said Kulkarni.

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Geodesic Profit Down 24%, Revenue Stagnant YoY For Q2 FY10