Intelligroup Q1 2009 Earnings Call Transcript

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2009-05-01 11:00:27.0

Tags: Oracle Corp., Call Transcript, Earnings, Energy Vertical, Biotechnology, Manufacturing, Healthcare, Investment, Finance, Seeking Alpha, Intelligroup Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). Our first question comes from the line of Chattel Alan (ph) from Kaufman Brothers. Please proceed with your question.

Unidentified Analyst

Goes back into the conference.

Unidentified Analyst

Hi, thanks for taking my question. You mentioned you're entering the alternate energy verticals, so if you could elaborate a little bit more on the opportunities you see there. And also, if you could just comment on some of the traction you're seeing in your other verticals like, high-tech and life sciences? Thanks.

Vikram Gulati

Sure. So, in the alternate energy vertical, what we have started seeing is a fairly good uptake in investments happening, especially in the solar sector. We now have three clients for which we are doing a variety of SAP and Oracle works, some SAP, some Oracle both in terms of long-term support as well as new projects.

So that's... we see a good traction there. What's happening in the vertical is that, companies are still evolving to define their space within the value chain, so unlike the conventional energy vertical, like the oil or the coal sector where each company has very well identified what its role is.

In the solar and the alternate energy sector, these positions are not yet clearly defined, but there is a lot of new investment and ERP is getting well accepted in that marketplace. What we have also done, is that we have been working very closely with Oracle, who actually helped define the Oracle footprint or the Oracle landscape for solar companies, solar power companies. So, that's working very well to our advantage. Primary location for all these customers happens to be California, but we... I guess that's going to be much more across the country as well in the near future.

With regards to some of the other verticals, we've continued to see that the hardest hit has been manufacturing vertical; manufacturing and discreet.... both high-tech and discreet manufacturing. Clearly I think, after Q4 onwards into Q1, that vertical that had been spared until that point of time started experiencing some significant downturn, and clearly investments and new projects have been drying up there.

Life sciences continues to have some very good traction. We've picked up new projects in that, especially in the Biotech space and the medical devices space. The conventional pharma space still seems to be slow, but biotech and med devices seem to have some reasonably good uptick.

 

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