Satyam Board Announces Key Actions
January 23 2009 - 9:28AM
PR Newswire (US)
HYDERABAD, India, Jan. 23 /PRNewswire-FirstCall/ -- Satyam Computer
Services Limited (NYSE:SAY) today announced several key decisions
from its two-day Board of Directors meeting, which ended today. The
meeting, the board's third in 13 days, was chaired by Tarun Das,
and focused on ensuring Satyam's business continuity. Chief among
the developments is that Satyam is in the final stages of arranging
additional funding to help cover operational expenses, including
salaries and vendor payments, through March. The Board expects to
secure funding and make a formal announcement to that effect before
Wednesday. In addition, the Board announced that the company's
fixed assets, including all campuses it owns, are free of
encumbrance, and that collections from receivables have been
robust. However, noting Satyam's demanding financial situation, the
Board and leadership team discussed ways to expedite collections
due from customers, and to also execute prudent cost-optimization
measures. Also, the Board announced that it has narrowed its list
of candidates for chief executive officer and chief financial
officer to three each, and will announce appointments to these
positions next week. The Board confirmed that the new CEO will be a
leader of global renown and uniquely qualified to lead Satyam
during this transition period. "This is a crucial decision for the
company and its stakeholders," said Das. "We fully recognize the
urgency and importance of having the right person with the right
experience and abilities steer Satyam through these turbulent
times." The Board, which was put in place by the Indian government,
has been actively supporting Satyam since its inception. Several
have been very visible in Hyderabad, and are helping manage the
organization and its operations. In addition, the Board met with
several investment bankers to seek advice on strategic options, and
will appoint one within a few days. As for customer issues, the
Board confirmed that it has taken the following steps in the last
few days: -- Board members have spoken to almost two dozen key
customers. -- The Board is sending personalized, direct
communication to all key customers, articulating recent positive
developments, to restore their confidence in Satyam Meanwhile,
business leaders and Board members continue to engage with
customers and reassure them about meeting commitments. Existing
customers continue to release new work orders and have given
positive feedback about timely delivery of projects and adherence
to service level agreements. In fact, several large customers have
visited Satyam development centers in India and expressed their
satisfaction with associates' commitment to their projects. "There
is a pronounced shift in customer attitudes -- from alarm in the
initial days to a sense of cautious optimism," said Board Member
Kiran Karnik. "Actions we have taken, and those we plan, are having
a distinct impact on customer confidence." Furthermore, the Board
is closely monitoring customer attrition; no material impact has
been seen thus far. On the employee front, Satyam leaders have
increased and enhanced interactions with Associates at all levels
to understand their concerns and update them about developments.
Associate attrition also remains well under control. "Associates
continue to show great resilience and exceptional commitment toward
Satyam and its customers during these challenging times, in spite
of the sustained media onslaught," Das said. Recently, the Board
held a conference call with Satyam's global business leaders
globally to understand field-level realities. The Board will also
reach out to associates all over the world through a video that
will be webcast today and be made available on
http://www.satyam.com/ shortly thereafter. The Board will convene
again Monday and Tuesday, January 26th and 27th. About Satyam
Satyam (NYSE:SAY), a leading global business and information
technology services company, delivers consulting, systems
integration, and outsourcing solutions to clients in numerous
industries across the globe. Satyam leverages deep industry and
functional expertise, leading technology practices, and an
advanced, global delivery model to help clients transform their
highest-value business processes and improve their business
performance. The company's professionals excel in engineering and
product development, supply chain management, client relationship
management, business process quality, business intelligence,
enterprise integration, and infrastructure management, among other
key capabilities. Satyam development and delivery centers in the
US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China,
Malaysia, Singapore, and Australia serve clients, including Fortune
500. For more information, see http://www.satyam.com/. Satyam
Contacts: For clarifications, write to us at Or contact our global
Satyam PR representatives at: India Deepa Jayaraman
+91-981-980-8681 US Melissa Baratta +1-212-679-3300 ext. 118 Europe
Sandeep Thawani +44-783-010-3838 Asia-Pacific Dan Bleakman
+61-439-408-484 Reshma Wad Jain +65-98-140-507 Safe Harbor This
press release contains forward-looking statements within the
meaning of section 27A of Securities Act of 1933, as amended, and
section 21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those reflected in the forward-looking statements.
Satyam undertakes no duty to update any forward-looking statements.
For a discussion of the risks associated with our business, please
see the discussions under the heading "Risk Factors" in our report
on Form 6-K concerning the quarter ended September 30, 2008,
furnished to the Securities and Exchange Commission on November 7,
2008, and the other reports filed with the Securities and Exchange
Commission from time to time. These filings are available at
http://www.sec.gov/ DATASOURCE: Satyam Computer Services Limited
CONTACT: India, Deepa Jayaraman, +91-981-980-8681, , US, Melissa
Baratta, +1-212-679-3300 ext. 118, , Europe, Sandeep Thawani,
+44-783-010-3838, , or Asia-Pacific, Dan Bleakman, +61-439-408-484,
or Reshma Wad Jain, +65-98-140-507, , all of Satyam Computer
Services Limited Web Site: http://www.satyam.com/
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