The Romanian branch of the US software giant Microsoft has announced a 16% growth in revenues in the FY2005, ended on June 30, down from the 27% growth in the previous fiscal year.
Whereas growth in the previous years was even higher, by more than 80% at times, it has slowed down over the last couple of years, considering the business has developed, and the IT market has matured, company officials told Ziarul Financiar. Still, the officials expect revenues to go up by approximately 25% for the next fiscal year (that began on July 1, 2005). The annual average growth rate since the opening of Microsoft Romania has been 56%.
Microsoft Romania''s policy does not allow announcing results per branch (turnover or profit), mainly because of regulations in force in the United States. According to the latest data available on the Finance Ministry''s website, Microsoft Romania made 348bn ROL (some 9.2 million euros at the current exchange rate) in turnover in 2003.
Silviu Hotaran, who became Microsoft''s general manager of the SE Europe region a year ago, also announced the appointment of Ovidiu Artopolescu as Microsoft Romania''s general manager. Artopolescu acted as interim general manger following the appointment of Hotaran to his new position, in June 2004. The regional division of Microsoft includes 20 countries, among which Romania, Slovenia, Croatia, Serbia and Bulgaria.
"The annual growth rate in the nine years since the opening of the branch, in addition to favourable growth context of Romania as an emerging country, makes me confident that we will continue on our upward trend," Artopolescu said.
Throughout the July 2004-June 2005, the enterprise sector increased at the same pace as the entire business, 16%, and so did the small and medium-sized segment. The two segments accounted for almost equal shares in the total turnover, with enterprise clients accounting for 47% and SME customers for 53%.
Revenues derived from services almost doubled, going up by 95% on the previous year to a total of 2.3 million dollars (1.9 million euros). The department is currently employing 15 people, with the number having gone up 40% in the last year. The major projects Microsoft officials mentioned include partnerships with Bancpost and Banca Comerciala Romana and the first utility contracts the company got, which saw it working with Distrigaz Sud, Distrigaz Nord and Romgaz.
Sales on the consumer segment witnessed a significant increase, Microsoft Romania officials say. Revenues here are largely made from the licenses for the Windows operating system that ships with the computers sold through retail. "Even sales of laptops with preinstalled software went up," Ovidiu Artopolescu said.
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