Ramco continues breakeven for the consecutive fifth quarter; announces breakeven for FY 09-10 posts global income of USD 37.09 mln; adds 38 new customers in Q4 : FY 09-10
Online PR News – 26-May-2010 – – Chennai, May 25, 2010: Despite a tough year for the segment, Ramco continues breakeven consecutively for the fifth quarter. Driven by tighter cost control measures and focused approach on emerging markets, Ramco posts global profit of USD 0.40 mln for the financial year 2009-10 as against last year’s profit of USD 0.45 mln. The slew of measures undertaken during the year, aimed at increasing productivity and rationalizing costs, is helping the company cope up with the situation and is expected to fuel growth in the coming quarters.
In terms of revenue contribution for the year, India accounted for 49% followed by US with 29% of revenues as against last year corresponding period contributions of 37% and 33% respectively depicting stronger domestic scenario. India was the primary driver with revenues of USD 17.53 mln followed by US with USD 10.32 mln.
For Q4 (FY:09-10) global revenues of Ramco Systems, including revenues from subsidiaries in USA, Switzerland, Singapore, Malaysia and South Africa stood at USD 9.05 mln. In terms of revenue contribution for the Quarter (FY:09 – 10), Indian operations accounted for 61% followed by US with a share of 22% as against last year corresponding period contributions of 36% and 38% respectively, again representing healthier domestic scenario. India was the primary revenue driver with the growth rate of 73% over the previous year same period.
During the last three months, the company has witnessed a good growth in the Middle East and North African market, with revenues of USD 2.17 mln.
During the year, the company’s flagship product RODE (Ramco OnDemand ERP- ERP delivered on cloud) successfully added 60 new customers in India. The on demand product reached a milestone of over 2000 users. With its steady 20% quarter-on-quarter growth, it is expected to proliferate itself in the coming fiscal.. The company has also forayed into Indian metros and tier 1 & 2 cities, to establish strong partner ecosystem for sales and implementation. Currently RODE has 41 active partners; efforts are in progress to further the numbers. The Enterprise Solutions has also witnessed key order wins. The BPO sector has also secured several important order wins, and has been the front runner with a notable growth since last year. For India, the total quarterly income reported is Rs 27.28 crores as against last year revenues of Rs. 18.12 crores depicting noteworthy growth of 51%. Net loss for the region for FY09-10 stands at Rs 1.10 crores as against net losses of Rs 1.56 crores of last year.
During the year, Ramco has entered into partnership with HP to market its Analytics Product on its neoview platform.
US had a relatively quiet year with revenues of USD 10.32 mln and order wins from existing customers.The Europe and APAC operations have been steady, with revenues of USD 2.23 mln and USD 3.11 mln respectively.
Additional business for Professional Services was also secured from several existing customers demonstrating their continued commitment to Ramco.
Commenting on the results, Mr. P.R. Venketrama Raja, Vice Chairman, Managing Director & CEO, Ramco Systems said, - “The year 2009-2010 has been quite good for us. Our strategy to focus on select developing countries has started yielding positive results. The breakthrough with the North African government is a major achievement, and we will strive hard to harness such opportunities in the future. Our investments to offer ERP on cloud is helping the company. Our strategy to improve on revenue mix with an emphasis on large and strategic deals has contributed to our success significantly. This is helping us capitalize on our technology and products. The company has been working on few large size deals, and we are hoping to reap significant benefits off these efforts. With the strengthening of the domestic and African market, we are confident about a stronger performance in the coming year”.
About Ramco Systems
Ramco Systems, a part of the USD 800+ million Ramco Group, has delivered enterprise software and services since 1989. Today, Ramco is a global provider, catering to over 100,000 users. Their resource strength exceeds over 1,306 employees operating out of 18 offices in 9 countries. Ramco Systems develops cost effective, flexible, and innovative enterprise applications, which can be fast deployed. It helps businesses respond to change swiftly. The company provides solutions to multiple verticals including banking, insurance, manufacturing, supply chain, aviation, transportation and logistics, healthcare, governance, retail and so on. Ramco’s collaborative solution innovation platform—Ramco VirtualWorks ensures that when your business changes, your system also changes along. Ramco Systems has been certified for ISO 9001:2008 quality standards, and ISO 27001 security standards.
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Certain statements in this release concerning our future growth prospects are forward looking statements which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT business including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, withdrawal of governmental fiscal incentives, political instability, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Ramco Systems may, from time to time, make additional written and oral forward-looking statements, including statements contained in our reports to shareholders. The company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.