Flextronics Software Systems: On The Upswing


Arun Kumar
President and MD


Unveiled solution to simplify billing systems for telecom service providers

Integrated all 4 companies acquired by Flextronics in India

With Flextronics as the new owner, the top brass saw it as a god-sent
opportunity to help them scale up, while retaining expertise as a niche player.
This finally resulted in DIRECTV offloading its 55% stake to Flextronics
International for $226 mn.

The company’s topline and bottomline grew by 34% and 40% y-o-y
respectively. Margins on the other hand, were flat. It, however, managed to
control staff costs-from 50% of revenue during 2003-04 to 47% during 2004-05.
Telecom software, higher other income-Rs 9.4 crore-and a lower rate of
growth in depreciations and tax costs helped net profits rise by 40%, from Rs
77.4 crore to Rs 108.2 crore. The year also saw FSS focusing on telecom service
providers and BPOs for future growth. The services sector contributed 81% of
revenues.


l Start-up Year: 1991 l Products & Services: GPRS, UMTS, SIGTRAN, network management, BPO
l Employees: 2756 l Branches: 4 l Address: Plot No 31, Electronic City, Sector 18, Gurgaon-122015
l Tel: 2346666 l Fax: 2455100 l Website: www.flextronicssoftware.com

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