Although the impact of financial crisis was reflected also in the IT industry, the company The Red Point took the necessary measures to counteract its effects.

“The strategic measures consisting of quickly rallying to the software market, the changes in operating parameters and reorganizing the company at the operational, technical and commercial level had a beneficial impact on company’s profits. Under these conditions, The Red Point achieved in 2009 an EBITDA of 16% compared with 7% in 2008. Its status of software developer and its large share on the niche market of software for higher education management are the determining factors for increasing company’s profitability. Despite difficult conditions for managing the cash-flow characterizing one year ruled by crisis, the company succeeded in maintaining an acid rate close to 1 and a good capitalization, with a solvency of 1.3 in 2009”, explains Nela Lungu-Constantineanu, CFO of The Red Point.

The company’s turnover changed from 12 million RON in 2008 to 10.9 million RON in 2009, with a decrease of 9.5%, but in 2010 it is estimated that the turnover will double as a result of the contracts concluded so far.

While the economic crisis has deeply affected the private sector in 2009 and the predictions for 2010 are not that optimistic, the company The Red Point has built a powerful recovery strategy in the private sector for 2011.

If until now The Red Point has focused on the enterprise field, mainly by developing its own, as well as its partners’ niche solutions, for 2010-2011 the company aims at reshaping its approach at a superior level, through expanding its competences and offer.

In addition, the company looks ahead at strengthening its leader position of the software solutions for the Romanian education environment and at expanding its university management solutions on foreign markets.

Another strategic direction refers to addressing the needs of the local public sector by turning into good value the opportunity of accessing structural funds. “The local public administration certainly needs higher efficiency in dealing with its citizens. Even though throughout the country we are witnessing a higher awareness of policy makers within public administration, the unused funds are still of great importance. Public institutions have started to show interest in software solutions – some of them have already made a step forward in implementing software systems, while others have just started drafting such projects”, declares Irina Craciun, Marketing Director of the company.

“Our vision for the next five years is based on the desire to become a regional leader of European calibre in the education field. We are building this vision in iterative sequences, despite the difficulties met in 2009. An important event for the company is winning a significant number of projects financed through non-reimbursable funds within POS DRU, consortia developed in partnership with the Ministry of Education, Research, Youth and Sports and major universities.
Our direct involvement will have a significant impact on the Romanian educational environment and labour market due to the added value we will bring to the educational system and to its capacity of placing manpower on Romanian labour markets. We are discussing concepts dealing with innovative and flexible learning environments, new communication tools, all serving one goal: education. We want to create a similar impact on the private sector through a strategy sustained by our team’s high expertise and the complexity of our own and our partners’ solutions”, states Alexandru Uglea, CEO of The Red Point.

The Red Point is a Romanian private capital company whose shareholders are Alexandru Uglea, Elvis Ciocoiu and Vasile Catea. The company offers personalized IT applications, solutions and services. The Red Point vision is sustained by developing expertise for a range of complex applications and programming languages, as well as strategic partnerships the company initiated and strengthened with players of the software and hardware solutions market.