CyberTech Systems and Software Limited Investor Conference Call Summary
This is a transcript of the CyberTech Systems and Software Limited Investor Conference Call that took place on June 28, 2018.
Business Updates and Transformation:
- Vish Tadimety, Chairman and CEO of CyberTech, provided an overview of the company’s business performance and strategic transformation.
- He highlighted the company’s transition towards a product-based business model, focusing on developing a software platform for cloud-based spatial analytics.
- This shift was driven by the recognition that while their existing IT business was stable, it lacked the growth potential of a software platform.
Cloud-Based Spatial Analytics Platform:
- Tadimety emphasised the significant opportunities in spatial analytics, particularly in the US and international markets.
- He explained that spatial analytics involve leveraging location data to provide valuable insights for businesses across various sectors, such as banking, retail, healthcare, and emergency services.
- To capitalise on this opportunity, CyberTech was developing a cloud-based spatial analytics platform.
Spatialitics - A New Subsidiary:
- CyberTech established a new wholly-owned subsidiary called Spatialitics, headquartered in Delaware, USA.
- This subsidiary focuses solely on spatial analytics, developing and marketing products based on the spatial analytics platform.
- The rationale for creating a separate entity was to maintain focus, attract talent, and potentially attract capital specific to the spatial analytics business.
- CyberTech will provide development support and investment to Spatialitics.
Products and Partnerships:
- CyberTech was actively developing specific products for different sectors, such as Spatialitics Utilities for electric, gas, and water companies, and Spatialitics Health for the healthcare industry.
- The company was leveraging partnerships with companies like ESRI, Cisco, and SAP to enhance market reach and leverage their existing customer bases.
- CyberTech’s existing product, GeoShield, was gaining traction through Cisco as a sales channel.
Financial Performance and Outlook:
- CyberTech experienced steady growth in its US business, with revenues and profits increasing by 10% to 15% annually in recent years.
- However, the company faced challenges with its GeoCivic product in India, leading to losses.
- To address this, CyberTech decided to reduce its focus on directly selling GeoCivic in India and instead, rely on partners for service and implementation.
- Despite the challenges in India, CyberTech maintained a positive outlook, driven by the growth of its US business, its strong financial position with zero debt, and the anticipated success of its spatial analytics platform.
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