Telstra has ended its consulting contract with high-speed network encryption supplier, Senetas Corporation.
Senetas has been involved with the telco giant’s Melbourne head office providing services with its application development and production, maintenance and support projects. Services were being provided under its consulting division.
In a statement to the ASX (ASX:SEN), Senetas said it had been notified by Telstra that its contract would not be extended beyond June 30, 2010. The work has been outsourced to an unnamed Indian-based consultancy.
Senetas chairman, Alan Stockdale, said if the contract was renewed, it would have added $3 million to the consulting division’s revenue in 2011. He stressed the company would not be impacted by any revenue loss this fiscal year.
“The company expects that new consulting initiatives, recently won consulting bids and the performance of the company’s security products division will help offset the revenue loss in 2011 and beyond,” Stockdale said in the statement.
According to its 2009 financial report, Senetas brought in revenues of $15.6m in the year to June 30, 2009.
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