Aztec Software continued its downward journey Friday after slumping on Thursday as investors spurned the scrip over the company's miserable outcome.

By 9:57 IST, the IT scrip plunged 6.98% to Rs 14 on BSE. Just 730 shares were traded on the counter by that time though. Yesterday, the scrip dropped sharply, by 12.50% to Rs 15.05. The scrip has now lost 28% from Rs 19.40 on 7 April 2003.

In consolidated results (including results of the company's subsidiary) for Q4 ended 31 March 2003 announced yesterday, the company registered a net loss of Rs 2.88 crore compared to a net profit of Rs 0.62 crore in the corresponding period of the previous year. Total income slumped 45% to Rs 8.56 crore.

For the full year (2002-03), the group recorded a net loss of Rs 4.21 crore compared to a net profit of Rs 16.94 crore for the year ended 31 March 2002. Total income dropped 39% to Rs 48.68 crore from Rs 79.82 crore in FY 2001-02.

Results turned out disappointing on a standalone basis, too, with losses widening to Rs 2.86 crore for the quarter ended 31 March 2003 compared to a net loss of Rs 0.06 crore for the quarter ended 31 March 2002. Total income decreased from Rs 15.38 crore in MQ-2002 to Rs 8.63 crore for MQ-2003.

For FY 2002-03, the company posted a net loss of Rs 6.18 crore compared to a net profit of Rs 13.78 crore for the year ended 31 March 2002. Total income decreased from Rs 78.89 crore in FY-2002 to Rs 48.81 crore for FY-2003, registering a fall of 38%.

Since its inception, Aztec Software has been targeting the American markets as an area of focus for business development. It offers software technology services to software product companies, Web-based service companies and traditional enterprises. Its primary development centre is situated in Bangalore. The company has offices in Santa Clara, Los Angeles, New York and Seattle in the US. Its client list includes marquee technology companies such as Asera, Microsoft, Jamcracker and Embarcadero.

Aztec is a focussed e-engineering solutions company, with strong technological expertise. Its expertise lies in database internals, Internet middleware, XML and other emerging technologies like WML, which it utililises for providing e-business solutions to clients. The company's current focus includes ASPs, B2B exchanges and new age Internet companies.

As Aztec Software targets the Internet-centric needs of companies worldwide, its business segment is most sensitive to the technology spending by corporates. Aztec Software continues to work with companies that build products and solutions that form the infrastructure on which Web-based commerce takes place. However, with a view to diversify its revenue base and improve visibility, it has started adding enterprise class customers to its revenue base.

As on 31 December 2002, the promoters held 57.11% stake in the company, while the public and institutions held 35.71% and 0.40%, respectively.

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