VADS expects 20% rise in turnover

  • Business
  • Friday, 14 Mar 2003


Managed network services (MNS) provider VADS Bhd, which is targeting to capture a substantial slice of the local MNS market worth RM1bil, expects to see its turnover grow 20% this year, said chief executive officer Yusof Ampuan Kechil. 

He said the company also expected VADS Premier – a software that can intelligently assign higher prioritisation for mission-critical applications – to be the engine of growth this year, contributing 80% -90% to revenues. 

To this end, the company would be investing RM4mil in technology upgrade for this product, Yusof told Starbiz in Subang Jaya yesterday. Last year VADS invested RM8mil of the proceeds from its flotation to enhance its core technologies and products. 

Currently, 11 customers are using VADS Premier, which was launched in October last year. The company hoped to bring in 50 new customers for the product this year, Yusof said. 

VADS, which shares the local MNS market with Heitech Padu Bhd and Cordoda Corp, has been able to withstand the scaling back in corporate information technology (IT) spending owing to the diverse range of its customers. 

The majority of its clients are in the finance, distribution and transport industries but the company sees new opportunities in multinational companies operating in Malaysia as well. 

Yusof Ampuan Kechil

“The market for MNS is developing rapidly as the information technology industry gradually moves towards services. This augurs well for us,” Yusof said. 

To build up its expertise, VADS had late last year sealed an agreement with US-based Teletech to tap the local contact outsourcing market. 

On the business risks, Yusof said: “We are not a project-based company, but rather a service company. 

“Our existing base will carry us through this period.'' 

He said companies had margins pressure to meet and would likely focus on their core businesses; thus, they would tend to outsource some business areas to the experts. 

“Our MNS solutions are able to help companies save costs by using new technologies. Thus, the outsourcing market is indeed an attractive market to tap,” Yusof added. 

To drive more business, he said, VADS had beefed up its sales force from 20 to 50 staff members and would be actively investing in marketing activities to increase its MNS customer base to 230 clients from 180 now. 

Two subsidiaries, VADS E-Services Sdn Bhd and VADS Solutions Sdn Bhd, would also be aggressively going after the system integration business, especially in the government and enterprise sectors, he added. 

The two subsidiaries are mainly involved in the management of contact centres and the provision of e-services focusing on systems integration. 

VADS reported profit before tax of RM13.64mil for the financial year ended Dec 31, 2002, up 15% from RM11.9mil in the preceding year.  

For latest VADS share prices and charts click here


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