Student social networking site Bharatstudent.com, which its owner Northgate Technologies put on the block in June, has three potential buyers, the company informs in its quarterly earnings report. A non-disclosure agreement has been signed with the buyers, so further details are not mentioned: whether these are domestic or international firms, and whether a time frame has been set for the sale.
Northgate now operates only in the online advertising domain through its ad network Axill. It also owns VoIP company Globe7, whose sales and marketing offices in Beijing and San Francisco were shut down in February. Northgate continues its uphill battle for survival, posting consolidated net losses of Rs. 169.9 million in the quarter ended Sep 09 compared to a profit of Rs. 225.46 million in Sep 08.
The company’s revenues are in free fall, down 92.6% year on year to Rs. 140.4 million despite selling and marketing as well as general and administrative expenses have been cut sharply. Staff costs have also fallen 62.8% to Rs. 27.65 million year on year.
The next quarter ending December 09 might be affected by the termination of Northgate’s contract for sale of Free Commercial Time (sponsorships of programmes) with Kalaignar TV Private Limited, which ended on October 9, 2009. The contract, the company announced, was a “significant source of revenue for the quarter and half year ended September 30, 2009.”