Sasken not affected by Avaya’s Nortel buy

Telecom software firm Sasken Communication Technologies has said it does not see any immediate impact from Avaya’s global acquisition of Nortel’s enterprise solutions business. Nortel is the top fifth customer for the Bangalore-based company.

Sasken CFO Neeta Revenkar told Financial Chronicle: "There won’t be any impact in immediate future, at least for six months. We are in talks with Avaya and whatever work we were doing for Nortel in the enterprise area, we will continue to do that.’’

In Q2 FY10, the company saw revenue of Rs 135.7 crore and net profit of Rs 16.4 crore. Nortel accounts for about 10 per cent of Sasken’s total revenues. The company CFO is confident that the relationship with Avaya will continue since Sasken already has the advantage of having the labs and trained resources in place.As for Nortel, there are no overdues from the company which filed for bankruptcy in January 2009, with billing being done every 20 days. ``We have receivables of around Rs 8-10 crore currently,’’ she said.

Nortel also works with TCS, Wipro and Infosys. However, they have relatively smaller exposure to Nortel compared to Sasken. Apart from being a client of Sasken, Nortel is also a key investor in the company holding over 9 per cent stake which it had bought in 2005. Meanwhile, Avaya said that it has completed acquisition of Nortel. As a result of the acquisition, Avaya will benefit from an expanded partner ecosystem, a broader portfolio, an enhanced customer base, and a greater ability to compete globally.

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