R&D work for phone makers boosts Sasken profit by 86%

R&D work for phone makers boosts Sasken profit by 86%
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First Published: Fri, Apr 20 2007. 10 48 PM IST
Updated: Fri, Apr 20 2007. 10 48 PM IST
Sasken Communication Technologies Ltd, a telecom software company, said its profit rose 86% to Rs11.7 crore for the fourth quarter ended 31 March, as major customers increased outsourcing of research for mobile phones and wireless devices.
Sasken earns majority of its revenue by helping phone makers, such as Nokia and Motorola, in development of mobile and wireless products.
Sales rose to Rs135 crore, up 73% from the same period a year ago. Revenue from services grew 72% annually to Rs126.6 crore while product revenue rose 97% to Rs8.7 crore. “Our focus this year has been to set the platform for profitable growth going forward,” said Rajiv Mody, chairman and chief executive.
Sasken reported 93% increase in profit, to Rs44.3 crore, for the year. Revenues grew 55% to Rs477 crore, as the top 10 customers increased business during the year. Nearly 86.3% of the revenue is generated from those 10 clients, three of which contribute more than Rs88 crore. It added six customers in the quarter to take its total client base to 84.
The company will begin to earn royalty from Japanese phone maker NTT DocoMo for a phone to be launched later this month. Sasken shares, traded on the Bombay Stock Exchange, were down by Rs14.70, or 2.72%, to Rs525.30.
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First Published: Fri, Apr 20 2007. 10 48 PM IST