KarenSoft drive to promote ExecSuite Business Times, Thursday, December 16, 2004 SOFTWARE developer KarenSoft Technology Bhd has embarked on a marketing drive in Malaysia and abroad to promote its newly developed office suite software. The Penang-based firm had been developing the product, called the ExecSuite, over the past seven years. It is effectively an alternative software to Microsoft’s Office Suite. Executive chairman and chief executive officer Chee Chong Hwa said the company plans to spend RM500,000 next year on radio and print advertisements to help promote the software. “Distributors and other non-traditional distributors are excited about the software. The only barrier is that (most) people are not aware of the product,” he told reporters and fund managers in Kuala Lumpur yesterday. KarenSoft officially appointed three more distributors yesterday, extending its market reach to the northern region of Peninsular Malaysia, as well as Pakistan, India, Saudi Arabia and Dubai. It already has six distributors with over 700 dealers in Malaysia. Chee said the overseas distributors expect to sell 12,000 units of the software next year. The ExecSuite’s price ranges from RM399 to RM2,499 per unit. “Our focus next year will be on Malaysia, but at the same time we are also going into Singapore, Thailand, the Philippines, Indonesia, China and Hong Kong as distributors there have indicated interest in selling the product,” Chee said. An analyst at K&N Kenanga Research is excited over the potential of the ExecSuite, which is set to drive KarenSoft’s earnings growth. In a coverage initiating report dated December 2, the research house said that although alternative office suite software is not new in the market, the key positive difference between the ExecSuite and other existing software is the familiar functionality, look and feel it shares with the MOS. “This eliminates the need for a new user to re-learn an entire new system, hence providing real competition in the office suite software industry,” K&N said. Microsoft is estimated to command over 90 per cent share of the office suite software industry, reflecting the lack of competition in the sector. K&N said the ExecSuite can offer exciting competition based on pricing and product features. The research house forecasts KarenSoft’s net profit to reach RM6.8 million and RM8 million for the financial years ending December 31 2005 and 2006 respectively. These are based on the estimated RM18.2 million and RM21.3 million sales for 2005 and 2006, respectively. K&N expects KarenSoft to register a net profit of RM800,000 on a revenue of RM6 million for financial year 2004. By CHONG POOI KOON