Four Soft eyes 25% rev growth by FY12
Smallcap player Four Soft has recently signed a contract with UK based Clover Shipping. The contract is said to be worth 150,000 euro.Srikanth Palem Reddy, the managing director of Four Soft, in an interview on CNBC-TV18, spoke about the latest happenings in his company and his sector.
Q: Give us more details about this contract that you have signed with a repeat customer. Financially, what is the benefit, how much do you make on this?
A: Clover Shipping is a customer of Four Soft, presently, on the old technology which is eTrans SME. It is a European company. This is relating to their operations in the UK and Netherlands. This contract is worth 150,000 euro for implementation of two products, our eTrans which is a new Java J2EE based three-tier freight forwarding software with accounting modules.
It will also work in integration with a Visilog, which is our collaboration and visibility software. So, it is the implementation of eTrans with Visilog in the UK and Netherlands for a contract value of 150,000 euro.
Q: It seems like you are getting a lot of interest coming in from Europe and UK. Can you explain what the scenario is looking like there for you, in terms of an order book going forward and what sort of interest are companies showing towards Four Soft?
A: I am assuming it is the same for most in the industry because we went through a real lull in 2009, but there were two things we did. We invested in what we called organic growth or putting in a new sales force in Europe, the US and in Japan.
As a result, if you look at what happened in the last ten months, we have closed almost 20 new customers. However, it is distributed between the US, Europe and Asia. Within Europe, we have more customers coming in from Netherlands and the UK because that is where our local presence is strong.
Q: What do you expect to possibly do in FY12-13? Any sort of internal estimates you are working with once you try and consolidate the European markets?
A: The contract value that we have signed so far with the new sales, over and above the existing business of this current year, which is a little over USD 3 million. The pipeline is strong, so the business plan meeting is scheduled for February first week.
We are looking at 25% growth next year on topline but a much better number on the bottomline growth for next year. That we will freeze in the first or second week of February and then we will come out with an official guidance for next year.
