KarenSoft Technology Bhd StarBiz, Saturday, December 11, 2004 KARENSOFF Technology Bhd is a small enterprise resource planning (ERP) company in Penang. The group has developed ExecSuite, which is hailed as the alternative software to Microsoft's Office Suite (MOS) and is now ready to be commercialised. Comment by K & N Kenanga: The key positive difference between the ExecSuite and the other office suites is the familiar interface it shares with the MOS. This eliminates the need for a new user to relearn an entire new system and hence providing real competition in the office suite software industry. Moreover, ExecSuite's entry-level package is competitively priced at RM299 compared with RM680 for MOS. The KarenSoft ExecSuite encompasses a collection of powerful desktop applications for the home and business user such as a spreadsheet, word processor, time and personal records manager, administrative, human resources management, customer relationship management tools, and others useful features. The global office suite software industry is estimated at US$9.23bil for 2003. Assuming a meagre 0.1% global market share (Microsoft is estimated to have a 93% market share in the office suite software market), KarenSoft could be looking at a turnover of some RM41mil perannum purely from its ExecSuite software. KarenSoft is currently concentrating on tapping the local market by offering attractive pricing and commission schemes. The group has already segmented its target market into three key areas, namely original equipment manufacturers, small and medium industries (SMIs) and retail market. Of these, KarenSoft has signed a memorandum of understanding with the SMI Association of Malaysia which will make KarenSoft its preferred ERP vendor for the association and its members. The ExecSuite software will be the key contributor to revenue and earnings going forward. Thus, we are projecting revenue of RM11.3mil FY05, expanding further RM13.3mil and RM15.8mil for FY06 and FY07 respectively. Also note that as costs for the software has been written off over the past seven years, any additional sales for its ExecSuite will positively contribute to its bottom line.