Hyderabad, INDIA, January 23, 2009: Satyam Computer Services Limited (NYSE: SAY) today announced key decisions concluded at its Board meeting, held on 22nd and 23rd January, 2009 in Hyderabad.
This meeting, the third in thirteen days since its reconstitution, was chaired by Mr. Tarun Das. The meeting focused on issues that are a priority for ensuring business continuity.
To tide over the ongoing requirements for operational expenses including salaries and vendor payments, the Board also announced that additional funding arrangements are in the final stages of being concluded. This is expected to be formally announced before Wednesday, 28th Jan 09, and will address the company's operational needs till end of March 2009, according to Mr Deepak Parekh, Board Member. The immovable properties of the company, including all campuses owned by it, are free of any encumbrance. The collections from receivables have been robust, so far. However, taking note of the demanding financial situation, the Board discussed with the leadership team, ways and means to expedite the collections due from customers and to also execute prudent measures for cost optimization.
The Board announced that they have narrowed the shortlist for the CEO and CFO positions to the final three, and would finalize their decision, in the ensuing week. The Board confirmed that the selected person will be uniquely qualified to lead the company during this period of transition and will be a leader of global standing and recognition.
"This is a crucial decision for the company and its stakeholders," said the Board. "We fully recognize the urgency and importance to have the right person with the right experience and abilities, to successfully steer the company through these turbulent times."
The Special Directors nominated by the Government have been actively partic ipating in supporting the company during these difficult times. At least one or two of them have been supporting the general management and operations, by their physical presence in Hyderabad throughout this period.
The Board also met and interacted with a number of Investment Bankers and will take a decision in the next few days.
Addressing Customer issues, the Board confirmed that it has taken the following steps in the last few days:
- The Board members have spoken to almost two dozen key customers individually.
- Personalized and direct communication is being sent by the Board to all key customers - articulating the positive developments - to restore their confidence in Satyam.
Business leaders and Board Members continue to be actively engaged with customers, reassuring them about meeting commitments. Contrary to common perceptions, existing customers continue to release new work orders and are expressing positive opinions on the timely delivery on SLAs, in their engagements.
A few large customers have already visited the company's development centers in India and have expressed their satisfaction on the team's commitment towards their projects.
'There is a pronounced shift in customer attitudes - from being alarmed in the initial days, it has changed to a sense of cautious optimism. The planned actions will have a distinct impact on the customer confidence' said Kiran Karnik, Board Member.
Customer attrition is being closely monitored at the Board level and the Board confirmed that it has seen no material impact so far.
On the Associate (employees) front, business leaders have enhanced their interactions with associates at the floor level to understand their concerns and to keep them updated about the ongoing developments in the company. The associate attrition remains well under control.
"Associates continue to show great resilience and exceptional commitment towards the company during these challenging times, in spite of the sustained media onslaught" commented the Board.
Board members interacted with the Business Leaders globally, through a conference call to understand the field level realities. The Board members have also reached out to the associates globally through a personalized video recording that is expected to be webcast later today and will be made available on the company's website shortly.
Commenting on the serious doubts raised regarding the head count in the company by external authorities, the Board has confirmed that prima facie, there appears to be no basis to doubt the same. The independent investigation process is expected to reaffirm this fact, in the coming weeks.
The Board is expected to meet again on Monday and Tuesday - the 26th and 27th Jan 2009.
Over SatyamSatyam (Euronext Amsterdam: SAYE, NYSE: SAY) is een vooraanstaande wereldwijde business- en IT-dienstverlener. Het bedrijf levert diensten op het gebied van advies, systeemintegratie en outsourcing aan klanten in verschillende sectoren.
Satyam beschikt over een brede, functionele expertise, hoogwaardige technologische kennis en een geavanceerd wereldwijd leveringsmodel om bedrijven te helpen bij het optimaal inrichten van hun belangrijkste processen en hun prestaties te verhogen. De professionals van Satyam blinken onder andere uit in engineering, productontwikkeling, supply chain management, CRM, BPM, BI, enterprise integration en infrastructuurbeheer.
Vanuit zijn Development Centres in de Verenigde Staten, Canada, Brazilië, het Verenigd Koninkrijk, Hongarije, Egypte, de Verenigde Arabische Emiraten, India, China, Maleisië, Singapore en Australië bedient Satyam een groot aantal klanten, waaronder uit de Fortune 500.
Voor meer informatie:
www.satyam.com.
Voor meer informatie:Lammers van Toorenburg Benelux PR
Lianne van Dijk
Telefoon: +31 (0)30 65 65 070
E-mail:
lianne@lvtpr.nl
Satyam Computer Services Ltd.
Sandeep Thawani
Tel.: +44 (0) 20 7715 5000
Email:
Sandeep_thawani@satyam.com Safe HarborThis press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading "Risk Factors" in our report on Form 6-K concerning the quarter ended December 31, 2007, furnished to the United States Securities Exchange Commission on January 28, 2008 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at
www.sec.gov. This announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from Satyam and that will contain detailed information about Satyam and its management, as well as financial statements.