[KOSDAQ REPORT (28)] Haansoft to offer MS Office rival in 2010

This is the 28th in a series of articles analyzing companies listed on the Kosdaq, Korea`s secondary stock market loaded with tech firms. - Ed.





By Kim Yoon-mi



Haansoft, Korea`s largest computer software developer, will launch new office products in the first half of next year to compete with Microsoft in the global office market, its chief executive said.

The Kosdaq-listed firm`s strategy is to divide the office market into four price levels - upper, middle, lower and free office - and to focus on middle and lower office markets with a competitive edge in price and product quality, Haansoft CEO Kim Young-ick said.

"The volume of the global computer office market is reaching $12 billion a year and Microsoft is taking up more than 90 percent of the market," Kim said in an interview with The Korea Herald.

"But I`m confident that consumers in advanced markets including the United States can choose us because our product price will be at least 50 percent lower than MS products while our product will have almost the same quality as MS products."

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Haansoft, established in 1990, plans to launch the tentatively-named Haansoft Office 2010 in the first half of next year, as the company celebrates the 20th anniversary of its establishment in 2010.

Haansoft Office is an upgraded version of Hangul Office 2007 and it has addressed compatibility issues, which were the weakest point of Hangul Office, he said.

According to the company`s previous announcement, Haansoft Office will retail at 36,000 won ($31).

The software developer already finished closed beta tests of Haansoft Office by government officials and corporations, and soon to start open beta tests for general consumers, Kim said.

The company also plans to release a new version of ThinkFree Office in the first half of next year, which can be used not only in personal computers but in portable devices including smartphones and netbooks, he added.



After Haansoft was acquired jointly by computer hardware maker Trigem Computer, Celrun and CelrunSN in June, Haansoft and Trigem could create synergy e-books, mobile internet devices and digital school textbooks, according to Kim.

Haansoft`s revenues have been quite stable through the first three quarters in 2009.

The company`s accumulated sales during the three quarters rose to 34.9 billion won from 32.5 billion won a year earlier, according to the latest company data.

Net profits jumped 12.3 billion won from 9.3 billion won during the same period.

"Although our corporate sector sales hovered at around 80 to 90 percent of our initial target, public sector sales and new demand in other areas offset the decrease," Kim said.

An analyst said the company has a high growth potential due to stable office software sales and the bright prospects for the ThinkFree Office program.

Daewoo Securities analyst Han Seung-guk said in a recent report that he recommends "buy" on Haansoft, setting the stock price target at 6,700 won.

The company`s shares closed at 3,880 won on Tuesday.

"Haansoft is expected to see a 10 percent increase in sales in the fourth quarter because the computer software market has started to enter a peak season. Bundling products with Trigem and new business opportunities will also contribute to sales boost," Han said.

"Given the uncertainty of the global economy and investment decreases in the IT sector, Haansoft is performing well."

(yoonmi@heraldm.com)