Infotech firm revs up e-commerce services

Backed by a recapitalization program, infotech provider Nextstage Inc. will step up its e-commerce and software services projects this year to turn its fledgling operations into profitability.

The publicly-listed Nextstage (formerly Pacemco Holdings Inc.) told the Philippine Stock Exchange (PSE) that it has now entered into the second phase of its corporate restructuring and "is now ready to take advantage of the various opportunities in the rapidly growing technology industry and the emerging electronic economy."

After its spin-off last year from an investment holding company mainly for cement businesses, Nextstage – led by former executives in top telecoms and IT firms such as Easycall Communications – has engaged in software development contracts with third parties in the US and Asia through its subsidiary Infinit-e Asia.

Two other subsidiaries (Mondex Philippines Inc. (MXP) and Mondex Protector Phils. Inc. (MXPP) are at their pre-operating stages and are set to go full blast this year. MXP, for instance, has successfully pilot-tested its chip-based, prepaid smart card payment operations in selected malls in Metro Manila and will continue to aggressively pursue targeted communities like schools, offices and associations.

"Focusing on targeted communities is a very cost-efficient approach to the creation of a critical mass while at the same time allowing MXP to leverage fully the multi-application feature of the Mondex card. With these targeted communities, MXP will be able to implement the ID system, timekeeping, secured log-in, library card, physical access control and other applications. In the future, these communities will form the base and foundation in creating the biggest mass-market target of MXP," Nextstage said.

The snart card operations business is scheduled to start commercially this year, which should add to Nextstage’s consolidated revenues. MXP is expected to realize transaction fees revenue from its card issuing and merchant acquiring business as well as contract revenues from Mondex-related applications and services.

Due to higher operating expenses, Nextstage incurred a consolidated net loss of P20.8 million in the nine months to September last year.