The funds to be raised through private placement will be utilised to strengthen the company's overseas marketing infrastructure, especially in the US and Asia-pacific regions. It also plans to set up wholly owned subsidiary in the US and Singapore and expand its domestic operations.

During the half year ended September 2000, the company has reported a net sales of Rs 4.16 crore, as against Rs 0.21 crore during the same period last year. Its net profit also improved to Rs 2.58 crore (Rs 0.02 crore). The paid-up equity share capital of the company currently stands at Rs 5.15 crore (Rs 3.40 crore), as a private placement was undertaken December last year.

The company has transferred its business relating to legacy products to its wholly owned subsidiary. The sale proceeds of the software source code to the subsidiary has been included under income from operations. The value of this transaction has been pegged close to Rs 4 crore and the valuation has been done `at cost'.

Odyssey has developed Public Key Infrastructure (PKI) based security products and was launched in May-end this year. According to Mr Raja, the lead time for sale of security products is fairly high. In case for a enterprise certification authority, it could range from four to six months. The revenue from the security products is expected to come in from the current quater.

The iniatives of the company include having its products certified by an independent agency. It is in the process of selecting one and the exercise is expected to be complete in the next three months. Among other things, the software outfit is looking at providing training in the security area. The training would be for its client and other interested parties. It has also recently become a principal member of the PKI forum