Israeli software testing and quality assurance company Tesnet (TASE: TSNT) has been chosen by BT Group Plc (LSE: BT) (British Telecom), to carry out automated testing of its enterprise integration systems. The contract is worth NIS 2.5 million.
Market sources said that a software testing project of this kind is usually the first link in a chain of follow-on projects. British Telecom will become Tesnet’s newest strategic customer, alongside companies such as Nokia (NYSE; LSE: HEX: NOK), Marks and Spencer (LSE: MKS), Deutsche Lufthansa AG (XETRA: LUAG; OTC: DLAKY.PK), Deutsche Telekom (NYSE: DT; XETRA: DTEG), Lockheed Martin (NYSE: LMT), Citibank, NTL and others.
Tesnet reported a substantial growth in activities in the first quarter of 2006, thanks to the increase in activities in Israel, Germany and Finland. The company posted NIS 25.2 million revenue, up from NIS 20 million in the corresponding quarter, and a net profit of NIS 1.3 million, double the NIS 650,000 profit in the corresponding quarter.
Tesnet had NIS 34 million in cash at the end of the first quarter. It has no bank debts, a shareholder equity of NIS 57 million, and it distributes all its annual profit in dividends. The company’s CEO and president is Gidi Kimchi.
Published by Globes [online], Israel business news - www.globes.co.il - on June 6, 2006
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