July 14, 2000: The Board of Directors of MphasiS-BFL today announced
the return of BFL Software to profitability one quarter ahead of
target after showing two consecutive quarters of losses. The synergies
obtained from the MphasiS-BFL merger have been instrumental in the
turnaround and have additionally resulted in an increase in the
BFL Software manpower utilization rate, which is up 3 percentile
also announced an 80 per cent increase in the proforma consolidated
unaudited US GAAP revenues to USD 14.41 million for the first quarter
of FY2000-2001, over the previous corresponding period. This growth
has seen a significant contribution from MphasiS Corp. of the US,
which has reported healthy top line growth with Q1 revenues up to
USD 5.3 Million as against a figure of USD 1.1 Million in the corresponding
quarter last year.
the first quarter results, Jerry Rao, Chairman, MphasiS-BFL, said,
"It is heartening for us to note the return of BFL Software to profitability
one quarter ahead of target on a trajectory that leaves us ahead
of the operating plan; we have every reason to be cautiously optimistic
about the future."
Board confirmed the appointment of Mr. Jaithirth (Jerry) Rao as
the Chairman. The Board approved the appointment of Mr. K.R. Krishnamoorthy
as an Executive Director. The Board approved the appointment of
Mr. Jeroen Tas as a Non-Executive Director with Mr. C. Kapse as
Board confirmed the appointment of Mr. K. Venkatesh as alternate
in place of Mr. Richard Braddock and Ms. Aditi Malik as an alternate
in place of Jose de la Torre.
R. Mohan, the Managing Director, reported to the Board that the
important milestone of completion of legal formalities associated
with the integration of BFL Software and MphasiS was reached on
June 15, 2000.
Software, which has been through a difficult period for sometime
now, has emerged in the black under Mr.Mohan's stewardship. He was
also responsible for conceiving and completing the MphasiS transaction.
He felt that this was the appropriate point in time for him to move
on. He requested the Board to relieve him of his responsibilities
as the Managing Director effective August 15, 2000.
Board put on record their sense of appreciation for the outstanding,
exemplary and resilient performance put in by Mr. Mohan as the leader
in a very trying period for the Company. The emergence of BFL Software
from the difficulties is a tribute to his fortitude and leadership,
the Board noted. The Board wished him well and expressed its strong
desire for a continued association with him, keeping in mind the
objective of leveraging his six-year association with the Company.