IT solutions provider Zylog Systems' board has approved investment of Rs 24 crore as

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equity in its 100 per cent subsidiary Zylog Systems (India) for implementing citywide and rail Wi-Fi projects. The investment is part of Zylog's plan to invest in newer geographies and technologies including VOIP (voice over internet protocol), enterprise 2.0 and Wi-Fi.

"Despite the present economic situation, the company is committed to invest in newer technology initiatives such as Wi-Fi, which has a potential to become a global business," said Sudarshan Venkataraman, chairman and CEO of Zylog.

"This investment, we feel, will help the company to reach the next level of growth in the coming years. We are also well-positioned to meet the present economic challenges and we will continue to invest in strategic initiatives that will help us improve our competitive positioning in the market," he added.

Zylog has reported a net profit of Rs 21.49 crore for the quarter ended December 31, 2008, a decrease of 8.32 per cent compared to the corresponding quarter of the previous year.

Revenue for this financial year stood at Rs 195.47 crore, an annual increase of 22.25 per cent and a sequential increase of 8.56 per cent. The company has made a provision for bad and doubtful debts to the extent of Rs 4.06 crore on two of its overseas client accounts, leading to a dip in the net profit levels for Q3.