Tech

The year 2011 was a tough one for information technology firms. 

Ho Chi Minh City-based Quang Trung Software City (QTSC) generally did not witness strong revenue growth in 2011, according to QTSC Company chairman Chu Tien Dung.

“Software firms servicing domestic market saw slight revenue improvements. Only those having outsourcing contracts with foreign partners saw better revenue figures,” said Dung.

Leading information technology (IT) giants FPT and CMC Technology Group also eyed sliding revenue and profit figures for 2011.

According to a FPT report, in the year to November 2011 the group raked in VND22.98 trillion ($1.09 billion) in revenue, surging 23 per cent on-year but only reaching 86 per cent of its full-year plan. Its pretax profits were VND2.32 trillion ($110.5 million), tantamount to 89 per cent of the projection.

FPT’s chief executive officer Truong Dinh Anh forecast the group could hardly achieve its 30 per cent revenue growth target set when he took the office.

Particularly, FPT’s 2011 pre-tax profit could reach an estimated VND2.57 trillion ($122.3 million) against revised full-year target of VND2.62 trillion ($124.7 million) in July 2011. Similarly, its 2011 revenue was an estimated VND26 trillion ($1.23 billion) against targeted VND26.8 trillion ($1.27 billion).

Anh assumed escalating inflation and economic recession had drained consumers’ pockets.

“Based on actual situation from now until the end of 2012 first quarter, the group will reconsider revising its 2012 revenue and profit growth targets,” said Anh.

Like FPT, 2011 was not a rosy year for CMC Group. Though CMC Group’s 2011 financial report is not yet available since CMC’s financial year often begins in April 1 and ends on March 31, the group saw shrinking revenue and profit figures in 2011’s second and third quarter compared to those one year ago.

Particularly, in these two quarters CMC’s net sales and services revenue came to VND1.54 trillion ($73.3 million) against VND1.89 trillion ($90 million) in the same period of 2010. Its total pretax profit was just VND10.9 billion ($519,000) against VND38.6 billion ($1.83 million) on-year.

CMC’s leadership attributed sagging revenue and profits to dwindling consumption against soaring financial costs on the back of bank high lending rates.

Despite sliding revenue and profit figures, both FPT and CMC leaderships believe 2012 could entail scores of fresh business opportunities. For instance, FPT leaders assumed 2012 would be a good year for mergers and acquisitions and the group was considering buying up the state stake in FPT Telecom.