Bangalore-based Logix Microsystems had tapped the market in October 1999. The company had raised Rs 2.60 crore through a premium issue priced at Rs 20 per share, which was oversubscribed 83 times. The scrip has performed well on the bourses and is currently traded at Rs 84 and trades at 17 times its latest earnings. Logix is listed on the Bangalore, Hyderabad and Calcutta stock exchanges. The issue had attracted institutional interest with TAIB Bank picking up 2 lakh shares in the company.
In the first financial year after its issue Logix has just managed to achieve its projections. In 1999-2000, the company has achieved an income of Rs 12.51 crore and a net profit of Rs 2.50 crore. the corresponding projections were Rs 12.51 crore and Rs 2.01 crore respectively.
But the real growth is expected to come in the current year. Logix is aiming to achieve a turnover of Rs 25 crore in 2000-2001. This growth is expected to be fuelled by acquisitions and tie-ups that the company has entered into.
Logix has acquired Singapore based software services company Mid Range Software for $1 million. Mid Range will now function as a wholly owned subsidiary of Logix and is focused on e-commerce and web related projects. Logix has also entered into a tie-up with US-based Centra Software. Logix would port the latter's voice-over Internet protocol technology in their Internet based training software called `Symposium'.
In addition to this the company is also in the process of acquiring a software company in the USA. It has identified and shortlisted three software companies as potential acquisition targets. To fund the acquisitions the company has planned a preferential issue of equity shares to institutional and strategic partners. Logix has earmarked about $10-12 million for the acquisition.
Logix is also planning to launch a portal primarily catering to the US corporates and will unveil an education programme through the site. It later plans to hive off the site into a separate US subsidiary and is planning to go in for an overseas float in the future.
Currently, Logix projects itself as a Customer Relationship Management (CRM) company. Logix is a consulting partner with Siebel, US - a world leader in CRM software for the Middle East, India and South East Asia. Siebel provides CRM solutions especially for Pharma and FMCG companies.
Worldwide, companies have realised the benefits of ERP and are looking for other areas of the enterprise which can give them a competitive edge. Logix will help companies implement their CRM solutions. Apart from this, the company is into ERP consulting and helps implement SAP R/3 software and Oracle applications. Logix is also a partner with the $135 million Peregrine Systems. Peregrine is the world leader in Infrastructure Resource Planning (IRP) software and has products which offers asset management, service centre and call centre support, fleet management and lease management.
Infrastructure management is the management of everything a company owns, purchases, leases, borrows or otherwise acquires through the items entire life cycle to the point where it is retired. Logix as a reseller for Peregrine will market computer software products and license such products.
The other major area the company is looking at is Internet based training (IBT). Its IBT division is set up at its software centre. Logix intends to get into the Internet arena with a product for training individuals in ERP. Logix will also develop ERP training packages for corporate users. It claims to have already imparted corporate training to clients like Infosys Technologies and Al Futtaim. Internet training is an area for future growth. Logix' success will depend on how it manages to distinguish itself.
Logix is making all the right moves as a software companies. As such, 2000-2001 will be the year of reckoning for Logix and a lot will depend on how quickly and efficiently it manages to put its plans into action.
