Content area
Full Text
GREEN TREE - Two years ago, management of the information technology staffing firm Mastech Corp. revamped the business to fit the economy, in which tech firms were blossoming.
Mastech became iGATE Capital Corp., a holding company overseeing multiple existing and start-up companies. It planned to take the firms public to gain a return on its investments.
Now, a different economy reigns and iGATE is again retooling. Management says the reassessment will payoff financially, but analysts believe it will take some time. iGATE CEO Sunil Wadhwani said the firm is simplifying its structure by merging some of the 15 subsidiaries.
Also, Mr. Wadhwani said iGATE has sold off its investments in several firms and slimmed its operations, partly through layoffs, leaving it with a strong cash position and no bank debt.
NOT SUFFERING ALONE
Although revenue for 2001 was $412 million, down from $477 million the prior year, and losses increased to $55 million, up from $9.8 million for 2000, Mr. Wadhwani said iGATE ended 2001 in a stronger financial position than it started because it had significantly increased its cash on hand to almost $100 million.
"Everyone in the sector is declining," Mr. Wadhwani said. "For the year we...