Stuart Corner
Monday, 31 May 2010 12:25
IT Industry -
Listed Tech
Australian security technology company (Senetas) has lost an annual contract from Telstra that would have been worth up to $3m in 2011 after Telstra decided to send the work offshore to India.
The consulting division of Senetas (ASX: SEN) - which claims to be "the world's leading developer and supplier of high speed network encryption hardware products" - has had a team of consultants delivering services at Telstra's Melbourne head office working on application development and production, maintenance and support projects.
It has been told that the contract will not be extended beyond its 30 June expiry. "It is understood the work would be outsourced to an Indian-based consultancy," Senetas said in a statement to the ASX. iTWire has not yet been able to confirm these details with Telstra.
Senetas chairman, Alan Stockdale, said: "Senetas will not be impacted by the revenue loss this fiscal year. However, if the contract with Telstra had been renewed it would have contributed to consulting division's revenue in 2011 by up to $3 million.
"Senetas expects that new consulting initiatives, recently won consulting bids and the performance of the company's security products division will help offset the revenue loss in 2011 and beyond."
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