Zylog Systems in expansion mode

Software solutions provider Zylog Systems has invested around Rs 65 crore to establish two offshore development centres at Sholinganallur and Sirusseri in Chennai as part of the focus on increasing its offshore business.

Zylog's new support facility spread over 8,400 sq ft in Sholingallur, will have a total seating capacity of 850 people. The 1.25-lakh sq ft R&D centre at the Sirusseri IT Park will have 50 engineers to start with, which will be increased to 100 by end-2009, the company said.

The R&D centre, christened as 'Idea lab', will provide R&D outsourcing services in various technologies including Web 2.0ô3.0, VoIP/Unified Communications, WiMAX/Fixed Mobile Convergence and RFID. The Idea lab is set to release its first set of business solutions during Microsoft Convergence 2008 to be held in Orlando, Florida, next month.

Zylog which went in for an IPO in August last year, raised Rs 126 crore, of which Rs 67 crore was invested to establish these two facilities. Rs 50 crore from the IPO proceeds was utilised for acquiring two companies in the UK and India for Rs 17 crore. The remaining Rs 120 crore is being utilised as working capital.

Zylog reported net profits of Rs 23.44 crore for the third quarter ended December 31, 2007, a 36.2 per cent growth over Rs 17.21 crore registered in the corresponding quarter last year.

As of December 31, 2008, total revenues were Rs 434 crore, and net profit was Rs 63.88 crore. Presently, the company employees 975 people onsite and 602 in offshore operations.