Digerati Technologies, an established provider of cloud communication services, has outlined strategic initiatives for sales growth and profitability.
Officials with Digerati Technologies said that the company's key strategic initiatives to successfully meet its long-term business objectives among other things include repositioning the company around its cloud and session-based communication services, segments of the industry that are experiencing significant growth and where there are new business opportunities for Digerati.
The company’s strategy also includes augmenting its current carrier-to-carrier sales distribution model with a higher margin model that enables its Value Added Resellers (VARs) to offer cloud and session-based communication services to the enterprise market, primarily the small to medium sized business (SMB) and leverage its existing global network and partnerships to provide new and innovative international voice over Internet (VoIP) solutions in the high demand by carrier and enterprise customers.
The company would also continue enhancing its infrastructure and back office system to streamline operations, automate key processes, and support the scalability of its VAR distribution model.
"FY2012 is shaping up to be a critical turning point for our company. We have made significant progress in enhancing our core infrastructure to support our growth strategy and continue to win new business opportunities with enterprise customers through our VAR relationships both domestically and internationally,” said Arthur L. Smith, CEO of Digerati, in a statement.
“We expect to report more on these new business opportunities and on our sales progress in the coming weeks. It is our intention to continue to control our costs and grow our business by securing additional funding to meet our working capital needs and to support continued expansion of our sales efforts, specifically as it pertains to our VAR distribution model,” said Smith.
He said that during FY2012 the company expects the top-line revenue from the legacy carrier to carrier business to decline as the company transforms its business model and place a stronger emphasis on higher margin cloud telephony applications and session-based communication services.
“However, we believe that this transition will increase margins, improve brand recognition, create a more stable revenue base, and allow us to target more rapid profitability growth that we anticipate will ultimately result in increased shareholder value," said Smith.
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Anil Sharma is a contributing editor for TMCnet. To read more of his articles, please visit his columnist page.Edited by Juliana Kenny