Aleksander Lesz, Softbank's outgoing president, said that his resignation, due to take effect on February 29, comes at a time when "the company is doing very well." He also confirmed earlier reports that his successor would be Krzysztof Korba, currently at the helm of the local arm of global integrator Unisys.
Lesz, whose resignation was a condition he made for the sale of his controlling stake in the company to Prokom a year and a half ago, will remain as a member of the board of directors. He also plans to hold on to some 2 percent of the shares for perhaps three years, saying that their price should then be around zł.80, or zł.50 more than the current level.
"Our sales plans and the budget for this year are ready," Lesz said, adding that "we know what we are talking about" in predicting that the company would boost its profits threefold, and increase revenues by 25 percent. As early as the first days of December, he announced that the company's portfolio of orders for this year was more than zł.200 million or the highest level in its history.
Analysts at BRE Bank brokerage house are, however, less optimistic about Softbank's future. While noting that the company has secured steady revenue flows for the next three years, they pointed to possible difficulties in generating sufficient cash flows to embark on new projects. It was, perhaps, this perception that led to false rumors last year that Softbank, a rare company in that it has no debt on its books, was planning a new share offering. Lesz dismissed both rumors as being false, although he did not absolutely rule out an issue at a later date.
Softbank is certain to make at least one acquisition this year, looking to buy a small, niche firm. Lesz declined to identify the sources of finance for this transaction.
Softbank's largest deal last year was the zł.500 million contract with PKO BP, with which the company has enjoyed a long working relationship. But it was the CEPiK contract that generated all the media attention. The controversy, fuelled by Softbank's unexpectedly low bid, spilled over into this year, when it was alleged that the company had failed to meet some of its obligations. Rudolf Borusiewicz of the Polish Counties Association said that the training courses offered by Face Technologies, Softbank's South African partner, "were completely and utterly useless."
Lesz denied all the allegations, saying that, "we are extremely happy with the progress that we are making," adding that the view was shared by the Ministry of Internal Affairs (MSWiA), the system's user. He also said that the contract was but the beginning of a long-term working relationship with Face Technologies, which is interested in similar projects in other countries in the region.
"In a few years," he said, "this system will serve as a great reference for us," Lesz asserted in defiance of the criticisms.
Although he described the CEPiK tender as "prestigious," fears linger that the controversy could damage the firm's reputation. According to Softbank CEO, however, "after a critical press publication our stock was down for three days only to rebound to its previous level." He pointed to vested interests that might be keen to see the system's failure, claiming that organized crime makes zł.1-2 billion per year from car theft, which the system would make much harder.
"How little of that money would be enough to create a stir in the media around the project?" he asked. The company is, however, understandably keen for the media frenzy to stop. Lesz agrees with the BRE analysts' prediction that CEPiK is likely to represent "a passing episode" in the company's history, as Softbank's position within the Prokom group will lead to an even heavier specialization in the banking and insurance business, which currently accounts for around 60 percent of revenues. The firm expects this business to grow by around 20-25 percent per annum over the next three years. Though, whether that will be enough to bring about an almost threefold increase it its stock price is a wholly different matter.
Softbank, the new member of the Prokom group, was last year's winner on the IT market.
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