Media Clippings

LOCAL conglomerate DVM Technology Bhd will fund its software development and regional market expansion with RM20 million raised from its Mesdaq listing. Executive Director Chen Chee Peng said RM16 million is expected to be raised from the public and RM4 million from the rights issue last Friday.

“About RM7.5 million from the RM20 million will be used to further develop our Next Generation Network (NGN) application suite, which uses broadband and Internet protocol (IP)-based infrastructure,” Chen said, adding that it will be branded under the Genico umbrella, enabling DVM Technology to be an export-oriented information and communications technology (ICT) provider.

Genico is the first of its kind to be locally developed, comparable in terms of functionality and engineering features to proprietary-based peers from United States and Europe, Chen claimed.

Two years of research and development by 15 software engineers at a cost of RM1.1 million paved the road for Genico’s core six applications -- Genico Service Delivery Platform (SDP) Core Platform; Genico Translator; Genico Virtual Private Network (VPN); Genico Prepaid; and Genico Advanced Services. “This year marks the end of Genico’s first phase,”Chen said. “The second phase will see RM7.5 million invested to develop more applications and expected to end in 2006.”

The Genico products are expected to contribute 40 per cent to DVM Technology’s bottom line next year. “Genico will be the first of many NGN products that we’re developing,” Chen said, adding the label Genico has been trademarked three months ago. DVM Technology is targeting users such as telecommunication operators, network, data and Internet service providers, and large enterprises. These users can offer data, voice and multimedia services to their subscribers, who access from third-generation mobile devices, personal digital assistants (PDAs) and personal computers.

Thailand, the Philippines and Vietnam will be DVM Technology’s focus next year. “Thailand-based Datamat PLC will be our conduit to Thailand and Vietnam’s ICT market,” Chen said, adding that Datamat will own 38 per cent equity in DVM Technology. “As for the Philippines, we are establishing strategic alliances with partners in that country.”

As the company strengthens its export-oriented focus with Genico, Chen anticipates foreign revenue rising to 30 per cent of DVM Technology’s revenue by 2006, from five per cent or RM3 million this year. “We’ve identified growth potential in both countries. Thailand has a growing number of mobile and Internet subscribers while Vietnam can afford to leapfrog ahead by offering data, voice and multimedia services on a single, converged network instead of investing in separate infrastructures,” he said.

DVM Technology has organised its functions of software research and development, systems integrator, and professional services to its three wholly-owned subsidiaries -- NGC Systems Sdn Bhd, ET Communications Sdn Bhd and Adtel Systems Sdn Bhd respectively.

“NGC Systems owns Genico and bears the responsibility to continuously innovate and provide the technology whereas ET Communications will market Genico and provide the infrastructure such as hardware and other communication components, needed by clients to use our technology,” Chen said, adding that Adtel Systems will advise, customise and project manage the deployment of our technology for clients.” Chen said headcount will increase slightly by an additional 20 employees by 2005 although marketing and software development activities are expected to intensify this year.

He cited outsourcing, establishing regional strategic business partnerships and productivity increase as key to help minimise cost, including doubling as a software developer.

Despite his current executive trappings, Chen insists that he is just another software developer with a great idea. “I’m basically a hands-on guy. I can go down to the root, debug and check the source code, line by line.”