Aztec revenue dips 8%

BANGALORE: Aztec has posted a turnover of Rs 11.62 crore and a net loss of Rs 0.28 crore for the quarter ended December 31st 2002,. For the comparable quarter a year ago, the company had posted a turnover of Rs 12.75 crore and a net profit of Rs. 2.36 crore, on a consolidated basis. Sequentially, the company’s turnover stood at Rs 13.25 crore and net profit of Rs.1.62 crore posted in the previous quarter ended September 30, 2002. The net loss was attributed to the company’s consideration of a one-time provision for doubtful debts to the extent of Rs 1.91 crore. Excluding the provision, Aztech recorded a net profit of Rs 1.63 crore for the quarter.

Aztec, CEO, William Chris Brown said, "In this quarter, Aztec was profitable on an operating basis (excluding the provision for doubtful debts). While we have been challenged at expanding our client base and due to declining billing rates, we have remained operationally profitable by changing our cost structure. Our strategy now is to also seek more established and mid-tier ISVs in our primary segments as customers. We will also expand our services to include implementation and related services to our customers’ customers. Finally we will continue to pursue a de-risking policy for the business."

The company’s revenues were impacted by decreased off-take by one of its major customers- Asera.

The company has seen an increase in the percentage of revenues coming from the ‘enterprise-class’ customers during the quarter. The older clients contribute 65% to the revenues of the company, indicating their comfort level with the services provided by the company. The company has also seen an increase in the contribution of Europe and APAC to its revenue base. The two regions provided the company with more than 18% of its revenues during the current quarter, indicating improving geographical diversification. The company continues to enjoy a very liquid balance sheet with cash and equivalents of Rs 830.76 million on its balance sheet.