The Next 50#56 ZYLOG SYSTEMS

After a blazing growth, things went spiraling down for this company. The numbers shows how challenging fiscal 2014 was, with revenues of `1,667 crore in FY14 as against `2,499 crore in FY13 is a massive decline. What should be more worrying for the company was the net loss of `598 crore as against a net profit of `115 crore over the last fiscal. So, clearly the company needs a revival plan which according to informed sources are getting ready. Over the last few years the company's growth was very impressive, but clearly it has lost out on the big opportunities over FY14 and this also exposes the ground realities of the IT outsourcing work and tier-2 companies need to ink long-term growth plans and short-term growth is not enough to sustain in the long run. As we look at FY15, much hinges on the revival strategies the company is putting in place.

The company's outlook remains grim. It needs to concentrate bot on its top line and bottom line and clearly needs a multi pronged strategy. One needs to foray into new vertical and diversify its geographical foot prints and tap on to new technology areas that will give it more domain depth.