Northgate Technologies moves south

Northgate Technologies slumped 5.32% to Rs 426.95 at 11:17 IST on BSE even as the company said on Wednesday, 5 March 2008, its subsidiary Globe7 signed two years strategic business contract of advertising with QQ.com owned by Tencent.

The company made this announcement after trading hours on Wednesday, 5 March 2008.

On BSE, 307 shares were traded in the counter. The scrip had an average daily volume of 24,376 shares in the past one quarter.

The stock hit a high of Rs 446.90 and a low of Rs 420.10 far during the day. The stock had a 52-week high of Rs 791 on 5 July 2007 and a 52-week low of Rs 397.65 on 22 January 2008.

The mid-cap scrip had underperformed the market over the past one month till 5 March 2008, declining 12.65% compared to the Sensex’s fall of 11.37%. It had also underperformed the market in the past one quarter, declining 23.95% compared to Sensex’s decline of 16.44%.

The company’s current equity is Rs 34.85 crore. Face value per share is Rs 10.

The strategic alliance with Tencent will enable Globe7 to access more than 200 million active Internet users or approximately 15% of the existing global Internet users.

Globe7 HK is a 100% step down subsidiary of Northgate Technologies. It is a leading Internet media company and owns web 2.0 portals such as Globe7.com, ziddu.com and egglad.com. Ziddu.com and Globe7.com are among world's top 1000 web portals as per alexa.com

QQ.com is owned by Tencent Holdings, a Hong Kong stock exchange listed company with market cap of $11.2 billion and more than $500 million annual turnover.

Northgate Technologies reported a net loss of Rs 5.34 crore in Q3 December 2007 as compared to the net profit of Rs 21.44 in Q2 September 2007. Net sales declined 77.71% to Rs 5.87 crore in Q3 December 2007 over Q2 September 2007.

The company provides information technology enabled services. The group operates in three segments viz. information technology services, telecommunications and online advertising.