Goldstone Technologies was locked at the 10% upper deck at Rs 28.90 in early trades on Friday on reports that it has bagged a major outsourcing deal with a US-based software vendor.

By 10:40 IST, while still at the upper limit, volumes of 16,077 Goldstone Technologies shares were traded on BSE. At that level, the outstanding buy position in the stock was 36,703 shares.

The company said it has received a five-year contract worth several million dollars from this customer. This amply demonstrates Goldstone's growing reputation as a 'vendor of choice' for technical support services for independent software vendors, the company said.

Goldstone has designed a solutions line for ISVs to provide product development and support services, and has been very successful in this space for over two years in the Europe and US.

Incorporated in the state of Andhra Pradesh, Goldstone Technologies, earlier known as Goldstone Engineering Ltd is engaged in the business of manufacturing thermo weld filled heat shrinkable sleeves and cable jointing kits. It is the only manufacturer of TWF Heat shrinkable sleeves in the country. Goldstone Technologies has now diversified into telecommunications, electricity, automobile spares and infrastructure development as they are recognised as industries of growth potential.

The company has globalised its operations by opening a branch in the UK and establishing strategic relationships in Germany, Belgium and Japan through business associates. In 2001, the telecom business of the company has been de-merged into Goldstone Teleservices Limited.

For the third quarter ended 31 December 2003, Goldstone Technologies registered a net profit of Rs 1.07 crore compared to a net loss of Rs 2.85 crore in the corresponding period of the previous year. Net sales rose by 47.40% to Rs 11.91 crore from Rs 8.08 crore in DQ 2001.

As on 31 December 2003, promoters held 29.41% stake in Goldstone Technologies, while the public and institutions held 51.42% and 3.08%, respectively.

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