Budapest Business Journal
2004. október 18.
Kürt Computer System House Rt; a local specialist in data protection and recovery, is looking to set up more subsidiaries to add to its companies in Germany and Austria.
These are likely to be in the U.S.A or Asia, József Kmetty, the newly installed CEO of the firm, told the BBJ last week “But it might happen that our creditors have other priorities to focus on;’ he said, “We are aiming at moving targets, so we don’t have the exact answers yet.’
Kmetty said setting up a subsidiary in Europe takes about a $I million investment, while in Asia it would be about $2 million, and in the U.S.A. approximately $3 million. “We also know that we generate $1 million-$1.5 million profit per year; he said.
“What we don’t know yet is, if we get external sources involved, how much ‘credit’ or funds we can get and under what circumstances.’ Kürt already has strong connections in Vietnam, where it has recovered data in the past. Kmetty is traveling to Vietnam this week, to sign contracts in which Kürt will sell its data recovery know-how bundled with delivery of its future R&D results. Kmetty played down the likelihood of opening a Balkan subsidiary. “Since we have limited funds, and the Balkan region is not famous for its payment discipline, the Balkans would mean an excessively high risk for us right now; Kmetty said.
At the beginning of October, Kmetty took over as CEO from part-owner and founder Sándor Kürti, who became president (see this week’s Who’s News). The company is seeking ways of raising outside investment to finance its international expansion. This marks a change for Kürt, which previously financed acquisitions out of its own profits.
A German subsidiary, Kuert Data Recovery Germany GmbH, was set up in March 2003, and is based in Bochum in the Ruhr region.
Kürt Rt has so far invested around $1 million in its German subsidiary, which is equivalent to the parent firm’s yearly profit. “Our operation in Germany started with data recovery, as we could undercut competitors by as much as half. It is moving towards data security, and is very much fitting in with our plans° Kürti said. Kürt spent € 1million on setting up Vienna based Kuert Information Management GmbH at the beginning of this year.
Kürt employs 55 in Hungary, I2 in Germany and five in Austria. It expects to recover 50,000 gigabytes of data in 2004,10,000 gigabytes more than in 2003. It is one of the largest data recovery specialists in the world. The company is reshaping its range of services, making its portfolio more accessible to residential users, in addition to businesses. Kürt had pre-tax profil of pt 20D million €813,000) on revenue of Ft I billion in 2003, and expects revenue to grow in 2004, according to Kürti.