Zylog Systems Limited, a subsidiary of US based Zylog Systems has registered a net profit of Rs 247.9 miliion for the quarter, up 18.5 percent QoQ and up 15.4 percent YoY. Revenues for the quarter ended December 2009 stood at Rs 2016.5 million up 5.6 percent QoQ and 3.2 percent YoY.
Zylog has cut down employee costs to Rs 1047.1 million, by 5.82 percent as compared to Rs 111.8 million previous quarter and by 17.77 percent as compared to Rs 1273.4 million reported for the corresponding quarter of the previous fiscal. The company has a global technical workforce of 2,018 people.
EPS has risen to Rs 15.06, up 15.23 percent YoY, but down 39.27 percent QoQ.
To Continue Acquisitions
In January, the company acquired Canadian staffing service Brainhunter for Canadian Dollar 35 million. This is the fifth acquisition for Zylog beginning with the acquisition of UK based Anodas Software for $3 million in 2007, Dubai based Ducont, mobile and wireless service provider in 2008 and in 2009 two more firms in Singapore and the US. Sudarshan Venkataraman, Chairman & CEO, Zylog Systems, has reiterated the company’s inorganic growth strategy in the earnings release, saying the company will look at acquisitions to fuel growth.
Key Corporate Developments In The Quarter
During the quarter Zylog launched its VoIP services Wi5 Mega Talk in Ahmedabad. Users could use this service with a analog phone connected to an internet connection via an adapter.
As of January, Zylog’s WiFi services cover 22 towns in Tamil Nadu and there were plans to expand that to 100 by March this year. After Tamil Nadu the company plans roll out its WiFi services in Andhra Pradesh first and then to Karnataka.
In e-governance, it has two live smart card projects in Kartanaka and Gujrat. Zylog also has plans take its WiFi and smart card services to Africa in the future and perform WiFi rollouts in Europe and Middle East.
—Updated: Zylog Plans Acquisitions; Shifts Wi5 Focus To Towns
—Zylog To WiFi Chennai, 5 More Cities To Follow; Trains Too
—Tata Communication Partners Tomizone For Wi-Fi RollOuts
—Indian Government Wants Telcos To Register WiFi Users Within 60 Days