Sitronics IT reduced rates

JSC Sitronics announced the unaudited consolidated financial results according to US GAAP for the second quarter and the first half of 2011.

In the second quarter the consolidated revenue of the company grew by 24% in annual terms to $332.6 million. Revenue from IT services grew by 21% in annual terms to $78.9 million. Revenue of the direction of microelectronics grew by 51% in the same expression to $92.3 million. Revenue of a segment of telecommunication solutions showed growth by 15% in relation to the second quarter of last year and made $152.4 million. Net loss decreased by 28% in annual terms to $21.8 million.

In general in the first half of the year 2011 the consolidated revenue of the company grew by 33% in annual terms to $610.3 million. The directions of IT services, microelectronics and telecommunications grew in comparison with the first half of the year 2010 by 89%, 51% and 4%. In terms of money revenue from these segments made $186.8 million, $160.2 million and $250.5 million respectively.

As Sergey Aslanyan, the president Sitronics [[Aslanyan Sergey Gareginovich|]] commented on results: "Each of three of our business segments showed two-digit growth in the second quarter as we achieved significant progress on key projects and continued the conclusion of new contracts with the organizations of both the public, and private sector in all significant vertical and geographical markets".

As for division Sitronics IT, growth by 21% in a quarter and for 89% in a half-year in comparison with previous year was caused by the large volume of sales of telecommunication equipment, the report says. Nevertheless, this segment showed decrease in profitability of OIBDA because of the increased investments into sales and marketing which were directed to strengthening of positions of the company, entry into the new markets and also due to dominance of low-marginal sales of the equipment over other types of activity.

At the same time sales of infrastructure solutions and system integration made 33.5% of revenue of the company in the second quarter and 27.4% of revenue in the first half of the year. Whereas sales of telecommunication solutions undertook 36.5% and 39.3% of revenue respectively. Sales of consulting services and IT outsourcing generated 30% and 33, revenue % respectively. It is reported also that from the moment of the declaration of results for the first quarter revenue from new contracts made $42.9 million.

The first quarter, we will remind, for Sitronics IT became outstanding so on its background results of the second quarter and first half of the year look though it is positive, but is more pale. Then revenue of the company grew in comparison with the first quarter of last year more than three times (by 208%) and made $103.2 million. At the same time 66.5% of revenue whereas on projects on system integration and support services – 20.7% of revenue, and for projects on business consulting – 12.8% were the share of delivery of the hardware.

Vladimir Yasinsky, the president of the company, explained then that the main share in structure of revenue according to the results of the first quarter 2011 fell on the project activity begun in 2010.