Quintegra Solutions

Dear Co-Owners,
 
 I am delighted to report on the performance of our company in fiscal
 2008. Under Indian GAAP, consolidated revenues grew by 514% over FY2007
 - an enviable rate - while net profits witnessed an ncrease of 454%. As
 a trusted partner to Fortune 500 and other established global
 organizations, we continued to focus on building long-term
 relationships, reflected in our repeat business rate of close to 90%.
 We added more than 412 employees globally and signed up 18 new clients
 during the year.
 
 In my last interaction - wherein I shared the successes of the
 acquisitions of ValleyUS of United States and JadeLite Technologies of
 Singapore; setting up of a robust practices- based organization; and
 increasing global footprint - I had promised that there would be more
 successes on the way. Looking back at the year under review, I
 personally feel that it has been a period where our Company has
 leapfrogged to a new level.
 
 Our Company acquired PAC Inc., a US-based information technology
 corporation providing a broad range of IT services to financial
 services, Telecom and Health care industries as well as business and
 technology consulting in a variety of IT-related projects. This
 acquisition was in keeping with Quintegras articulated strategy of
 enhancing our competencies to serve clients better.
 
 Founded in 2002 and headquartered at McLean, Virginia, PAC has brought
 core competencies in high-end IT consulting and eadership in
 middle-space IT services such as enterprise application services, data
 architecture & data validation, audit compliance documentation,
 business process management, integration architecture & deployment and
 testing & configuration management. This transaction has augmented
 Quintegra with these value adding capabilities.
 
 PACs offerings in the middle-space IT services and high-end IT
 consulting capabilities complements our strong offshore presence,
 mature delivery processes and growing IT services & products offering.
 Combining the resources of both organizations has allowed us to offer
 clients a broad and deep set of IT services and products in the
 industry.
 
 The opportunities that present itself before our Company are truly
 immense in their potential & depth and an augmented management team
 should provide superior execution capability to capture such
 opportunities and effectively convert them into strong & value-adding
 results for all our stakeholders.
 
 As part of the strategy , having we reached critical revenue size and
 deepened out vertical based revenue , we have brought in the best
 Management team in to our company to take our company to the next
 level. I am really excited to announce that the new team which has come
 on board are the best management team any company can aspire for and
 with these changes I am confident that our march to become one of the
 best companies in India are not far off.
 
 As part of the new team, Dr. Murali Subrahmanyam has joined Quintegra
 as Chief Operating Officer. Dr.Murali was the head of Merrill Lynch
 (India) Technology Services (MLITS) and was the architect of offshoring
 to India from Merrill. Along with Murali, we are joined by Chandra Kant
 as marketing and strategy head, K Srinivasan for handling sales outside
 US, Arun Arumugam as Head of BFSI vertical and Sunder Athreya. We also
 have Jerry Hunt (formerly with Dow Jones) joining us to spearhead sales
 and marketing in the US. PAC has a major chunk of revenues from BFSI
 space and we have strengthened our offshore capability with having
 leaders from these space will certainly going to benefit our company in
 many ways. With each executive bringing in over 15 years of IT industry
 and leadership experience, I am confident this team will take our
 Company to the next level of business while maintaining our commitments
 to the existing stakeholders. This team compliments my existing
 leadership team are helping drive strategies and implementing them.
 
 Our Company also crafted a differentiated business model and strategy.
 Practice Heads are now charged with more narrow but deep, focused roles
 in high growth areas. We have added new service models to our
 portfolio. In todays business environment, operations cannot be
 separated from technology and therefore we will aim to provide a
 holistic service to our clients using Operations-as-a-Service (OaaS)
 methodology which combines shared KPO services with our products run in
 a Software-as-a-Service (SaaS) model. This OaaS-SaaS methodology is
 unique in the industry as it provides operational benefits to our
 clients by focusing on operations and technology simultaneously.
 
 As part of strategy to create enterprise wide differentiators, we have
 also institutionalized a project framework called MineValue, which
 involves empowering, capturing, executing and quantifying various ideas
 and suggestions for improvement within projects / systems. This will be
 a unique value added proposition to our customers. In addition to
 creating differentiators enterprise wide, in every service offering
 that we have, we have created clear differentiators which sets us apart
 from competition and gives a compelling case for our prospective
 clients to engage us and current clients to grow with us.
 
 To pre-empt the problems that technology companies are challenged with
 on reaching certain size, we, at Quintegra, as part of strategy,
 decided to offer services in ‘Ceribral’ consultancy space to our
 customers. This is a conscious and well defined strategy as part of our
 future growth.
 
 Not only has our Company been growing in terms of services, we have
 significantly strengthened our proprietary products portfolio. We have
 acquired copy rights for Flexible Home Building (HBfx) - Quintegras
 state-of-the-art solution for SAP for EC&O package; Hospital Management
 & Information System (HMIS) - a revolutionary ERP solution with
 end-to-end features for simplifying hospital management; and EduCampus
 - a versatile, web-based, campus management solution that seamlessly
 ntegrates and manages all of an Institutes key functional work
 processes.
 
 In adding to our global footprint, we operationalized proximity centers
 in Africa and Ireland. We have also planned for additional proximity
 centers as well as expanding capacity at our offshore center. These
 initiatives will enable our Company to keep up with the pace of growth.
 
 Our Company has also made a headway in Corporate Social Responsibility
 (CSR) activities this year, first of which was the Green Office
 campaign. There shall be more initiatives taken up in the future.
 
 While there have been a string of successes for our Company to cherish,
 it is prudent not to ignore the surrounding cautions.  There has been
 unprecedented turbulence in the US, which in turn has contributed to a
 slowdown in the overall economy.  Revenue shortfalls, profit warnings
 and layoffs have become commonplace; and the urgency for large
 corporations to adopt new initiatives has declined.
 
 IT budgets are now subject to careful consideration. Companies are
 seeking to maximize the return on their IT investments and therefore
 focus on short-gestation projects that promise predictable, substantial
 payoffs. CIOs are increasingly focusing on consolidation, integration
 and convergence imperatives, rather than on radical advances in
 technology infrastructure.  There is an unmistakable shift towards
 value-for-money and, as a result, towards longer decision-making cycle
 times.
 
 Clearly, these are challenging times for an IT services company. As
 self-preservation and prudence descend on US industry, the near-term
 demand outlook for IT services is not as rosy. Nevertheless, we
 continue to see significant opportunities as value-for-money is
 emerging as a key imperative and intend to strengthen all the
 ingredients of growth - infrastructure, people, processes and systems.
 
 This has been a landmark year for our Company since my first
 interaction with you. The results are there for us to cherish - in a
 span of 3 years, we have grown from a  million company to a 0
 million company, with a 1000 strong global team. Our goal for 2010 has
 been achieved in record time by 2007 itself. I am proud of and thankful
 to each and every Quintegran across the world, each of whom has
 contributed in delivering this growth. Now, we are on the threshold of
 our next wave of growth and are committed to make it happen.
 
 Our company is now ISO 27001 in Data security and ISO 9001:2000 in
 quality standards. We have been assed and obtained SCAMPI B in SEI- CMM
 Level 5i as well. Our Company is well poised to take on the next set of
 challenges and move closer to becoming a nationally and globally
 respected organization. I personally thank you for your patronage and
 look forward to your continued & expanded relationship with Quintegra.
 As been in the past, I count on each one of you for your support in
 building QUINTEGRA as a great company in every aspect .
 
 Place : Chennai                              Shankarraman Vaidyanathan
 Date  : 29-08-2008                      Chairman and Managing Director