The company has decided to set up an additional hardware unit (Unit 2) to manufacture mother boards, memory modules, etc. To this end, the company would introduce surface mounted technology (SMT) line at an investment of Rs 3.5 crore. The new line was expected to bring in an additional revenue of Rs 30 crore to the company's kitty with a 10 per cent increase in its bottom line.

Briefing the media in Bangalore on Thursday, Cerebra's chief executive officer Sriram Mahalingam said the company had recently bagged work order worth $1 million from clients in Australia and the US to develop certain products.

The company had also signed a MoU with a Nepal-based IT firm for various hardware and software projects. The initial transaction would begin by end-August, he said.

Mahalingam said, ``Discussions with 20 to 25 overseas firms are scheduled to be held post October.'' The company would also look at European markets with a focus on Germany. Currently, Cerebra was in talks with a couple of German clients, he said.

Cerebra's CMD R Ranganathan said pre-IPO, the company had estimated turnover of Rs 53 crore for fiscal 2000-01- Rs 44 crore from hardware while the rest from software businesses.

Now with the company expanding its domestic and overseas activities, he said it had to rework on its financials and was confident to clock in total business of Rs 113 crore. Of the total revenue, Rs 70 crore would be from hardware (unit 1) Rs 30 crore from hardware (unit 2) while Rs 13 crore from software businesses, he said. During Q1, the company posted Rs 7.23 crore with a PAT of Rs 8 lakh.

Mahalingam said the company would identify niche areas in e-commerce. The company was currently in the process of installing the required software in place to turn its Website into an e-commerce market place. The site would be WAP-enabled, he said.

With SMT in place, Cerebra would have a capacity to manufacture 30,000 mother boards a month. According to IDC estimates, the country sells over two million PCs a year of which Cerebra has a market share of 3 per cent.