VisualSoft's profit warning

By Our Staff Reporter

HYDERABAD, MARCH 22. VisualSoft Technologies has issued a profit warning that it expected the revenues for the quarter ending March to be significantly lower than the previous quarter ended December 2000. However, the turnover for the year ending March 2001, will be higher by more than 90 per cent as compared to the previous year, though the growth is likely to be lower than envisaged earlier.

The company said in a release that this was due to the slowdown in IT expenditure in the U.S., which is expected to effect its revenue from sale of components, Java beans and enterprise products such as webproject, and webdev.

The drop, it said, had been sharper in the case of `developer' segment due to deferment of investments in new technology and applications. The revenue from project services is likely to record steady growth into the ensuing financial year as well.

On the products front, the reversal was attributed to slackening of demand for components going into Java applications, slowdown in Internet infrastructure, and holding back of IT expenditure.

Mr. D. V. S. Raju, Chairman and MD, said the company would persist with its business model of developing new technology applications, to leverage the prevalent technology platforms and render a range of high end services around the same. The outlook for the current year will be driven by the improvement in IT expenditure in the U.S., particularly Internet infrastructure, and success of sale of components to enterprises as against developers mainly, new breakthrough on the technology front and continued growth in project services to global enterprises.

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Section  : Business
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