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Press Room, 28. August 2009

Old project limited Romsys business decline to 5-6 percent

A restructuring of Romsys IT system integrator sales team, made in the first quarter of 2009, and repositioning the solutions portfolio are expected to generate a sound business for the company in the financial-banking area in the second half of this year, according to Romsys Administrator, Horaţiu Berdilă.

A restructuring of Romsys IT system integrator sales team, made in the first quarter of 2009, and repositioning the solutions portfolio are expected to generate a sound business for the company in the financial-banking area in the second half of this year, according to Romsys Administrator, Horaţiu Berdilă. The work volume and opportunities doubled on this segment, he added.

The first six months of 2009 brought a 5-6 percent decline of the company’s revenues, below the estimated drop of the economy and the foreseen drop of the market.

“Romsys has many contracts previously signed, it is the main supplier on the utilities field for many years, and Distrigaz Sud, E.ON [energy companies], Dacia Piteşti [carmaker] are clients which, although undergoing a crisis, are not lowering investments,” Berdila said. “Our main problem is not how to make it these days, but how to bring new clients,” he told Business Standard.

According to him, within an interval of two and a half months from the beginning of this year, Romsys changed 70% of its sales team which now consits of 24 people, a few more than at the beginning of the year, and for the product portfolio, though kept in full, the most profitable crisis solutions were pushed forward.

In spite of the changes made at the level of sales team and portfolio, the company’s gross profit margin dropped 5-6 percent, due to increased competition and players which provide very low prices. “We are forced to offer discounts, because others are coming with cheaper products. Depending on final results for H1, we are to make an analysis and decide whether we start restructuring or not,” Berdila said.

Romsys now has 310 employees and according to the company’s representative there weren’t any structure changes as a follow-up of the crisis. The company is massively investing now in the sales area because, unlike the previous years, there are few clients that decide on implementing without seeing if the solution has at least a minimum impact on business. The Romsys CEO states that the IT market may have a “slow” year finish only if the government would start investing, the banks would start to enable the flow of money and the companies would regain their courage to invest. “It’s true, structural funds represent something little for the market but it is important that they have started moving, it’s money that’s entering the market” Romsys official also stated. The company reported in 2008 a business of 25 mio euro. On the IT market, Romsys competes with IBM, S&T, HP.

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