VisualSoft income, net drop in Q3-06

VisualSoft income, net drop in Q3-06

By agencies   |   Wednesday, 25 January 2006, 08:00 Hrs
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HYDERABAD: Visualsoft Technologies Ltd has recorded lower income of $6.53 million and a net profit of $0.91 million for the third quarter of the current financial year, against $10.92 million and $1.56 million respectively during the same period last year.

This reflects a significant drop in both revenues and net profit. The company stated that it was due to the restructuring it had undertaken following the announcement of merger of two independent new entities of AppLabs Technologies and eSolutions Private Ltd with VisualSoft.

Announcing Q3-06 result of the company, CFO, V Krishnan said, “The company has decided to restructure its operations, consolidate business along two main streams of testing and product services. This consolidation and merger process would be completed once the court approval is received.”

Following the restructuring process, as opposed to total revenues of $43.83 million and a net profit of $6.43 million for the financial year 2004-05, the revenues and net are likely to be lower this financial year.

For the fourth quarter, VisualSoft expects to acquire a U.S.-based company engaged in testing domain. To part fund this move, the company plans to raise $20.45 million through foreign currency loan or rupee term loan.

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