Persistent reports 50p.c. revenue growth in FY 05-06

BANGALORE: Persistent Systems Pvt Ltd today shared its vision on how it would be
approaching the Outsourced Product Development space in FY 06-07 and the years

to follow.






Persistent's turnover for financial year 05-06 was Rs. 216 crore, compared to Rs
147 crore for the corresponding period of the previous year, up 50 per cent. It

also registered an increase in net profit to Rs. 41 crore from Rs. 34 compared

to the corresponding period of the previous year. Persistent's CAGR is 60 per

cent for the last three years.






Persistent added 39 new customers in fiscal year 05-06.





Commenting on the growth, Dr. Anand Deshpande, chairman and managing director,
Persistent Systems said: "The market for outsourced product development is

evolving rapidly. It has been accepted that it is a specialized activity and

Persistent Systems is a leader in this important market category. We have been

closely following the market trends for outsourcing and we are very excited at

the prospects. Software Companies are growing and are considering outsourcing as

a strategic requirement.






Cost is no longer the only consideration. Speed to market, workforce flexibility
and domain expertise are the drivers for the Industry".






Taking these trends into account, last year Persistent opted for "expansion
stage" investments from Leading Venture Capitalists -- Intel Capital, Gabriel

Venture Partners and Norwest Venture Partners.






Last November, Persistent acquired Goa-based ControlNet India, thereby extending
its product development expertise into embedded systems and ASIC design.






Persistent has emphasized an increased focus on four major verticals - Telecom,
Infrastructure ISV, Application ISV and Tools. It has also set up competency

centers for Microsoft Technologies, Telecom, Embedded Systems and ASIC design,

Life Sciences and Open Source.






These Competency Centers provide clients with a strong balance of people,
processes and technologies, bound together with the right infrastructure and

best practices.






Recognizing challenges of Independent Software Vendors and Enterprises,
Persistent has initiated a "Design for Manufacturing" strategy through its new

engagement model Go-To-Live. Targeted specifically at emerging software vendors

and enterprises, Go-to-Live enables start-ups to quicken their time-to-market

and focus on innovation and business growth.






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