April 6th, 2007,Insigma Technology Corp. announced that it had formed a partnership with State Street Corp., the largest custody services provider in the world. Their enquity partnership is also beneficial to Insigma’s business development for serving more institutes in US market.
Insigma has been on a pace of widening and deepening cooperations with various global software companies. It had purchased a 40% stake in software outsourcer ComTechGems early this year and later announced a strategic partnership with Microsoft. And the equity partnership with State Street shows that the company is taking another step in this direction. The company is believed to achieve high annual growth rate in the software outsourcing field in the next several years.
The company has also set a managment stock option incentive plan. Under the plan terms, the managment has the right to exercise options if the year-over-year net profit growth rate reaches 30%, 60% and 100% from 2006 to 2008 respectively and the weighted average return on net asset is not lower than 15% for the same period. This incentive plan has boosted investors’ confidence in the future growth of the company. Fortis-Haitong fund has increased its holding in Insigma in the 3rd quarter of 2006, and again bought a large number of its shares in the 4th quarter. Currently, institutions have a positive view on the company and it is worth for investors to pay attention to the company’s shares.
Software outsourcing services is an industry that greatly supported by government, with more and more cities and provinces eager to develop business in this field. And it is also among the 3 main business lines of Insigma Technology Co., Ltd.( The other two refer to mechanical and electrical engineering services, software outsourcing services and IT application services.) Relying on Zhejiang University’s technology capabilities and rich human resource pool, Insigma Technology Corp.has already been in a leading position among domestic corporations of the same field with a high profit margin. And it also serves big financial institutes in US market.
(HuaTai Securities)
