NewConnect-listed Suntech has published its 1Q results, which represent the first effect of its sales maximisation policy. Following the last-year changes in its cost structure, the company is about to implement specific sales and product solutions.
Warsaw, May 20, 2010
The reported three months brought about a significant turnover improvement. The company achieved the sales of over PLN2.2 million versus PLN1.15 million in the first quarter of 2009. The net profit responded to the changes even more strongly and improved the last-year loss of nearly PLN1 million to a profit amounting to over PLN300,000. Similarly, the EBITA reached the level of PLN380,000.
The company`s next move will be to raise its sales volume further, while cutting the fixed costs. Increasing the return rates of projects and implementations is an important element of our strategy and we have a few ways of accomplishing it, says Piotr Saczuk, the Suntech President. One such method is to move smoothly from currently sold large systems intended for a narrow segment (very long sales processes, high price, complex functionality) to offering modular and configurable systems. In addition to streamlining the sales process, it will allow to bring the existing products to a new segment of smaller operators, whose market is very deep, and to other sectors, where - until now - there has been a total absence of suppliers providing Inventory or Billing CRM solutions.
The client reaching and acquisition costs can be reduced through co-operation that has already been established with global distribution networks, i.e. within a model of a network of partners supported by the headquarters.
Saczuk announces that, by the end of the second quarter, the company wants to sign contracts that will fully secure its all-year costs.
Currently Suntech is carrying out the following projects:
- Aero2: a Network Inventory system for a mobile network operator
- NCBiR: upgrade of system architecture and functionality
- A client representing the service sector (outside the telecommunication industry)
- Contracts with the existing clients
For the last few years the company has conducted an investment policy, whereby it built a portfolio of global-scale innovative products and implemented them in the Polish market. Our clients include banks, mobile operators and cable networks, ranging from the largest players through to tens of local companies. At this stage of development, achieving good sales and return on investment becomes a priority in the strategy, Saczuk adds.
