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Eurotech May Post 2011 Net Income After Adding Cloud Services

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Dec. 3 (Bloomberg) -- Eurotech SpA, an Italian maker of miniature computers, said it may post a net income next year as it adds services such as cloud computing, which lets users access data, software and hardware through the Web.

“With cloud computing, we aim to serve companies that previously couldn’t afford the IT infrastructure, increasing the number of potential clients and expanding beyond our niche,” Chief Executive Officer Roberto Siagri said in a phone interview. “If the positive trend continues and the economy holds up, we will likely post a profit at the bottom line level in 2011.”

Eurotech is set to post a net loss this year after reporting a loss of 7.23 million euros ($9.55 million) in the first nine months. Full-year revenue is projected to grow in line with the nine months through September, when it rose 14 percent to 65.8 million euros, the CEO said. The order backlog grew more than 50 percent in the nine months from a year earlier, Siagri said.

Finmeccanica SpA, Italy’s biggest defense company, owns 11 percent of Amaro, Italy-based Eurotech, according to the website of market regulator Consob. Siagri, the second-biggest investor with about 7 percent, plans to keep his stake “for the time being,” he said.

On Nov. 15, Eurotech unveiled its Everyware Device Cloud, a system which can be set up “very quickly” to allow companies to access and share hardware, software, applications and data on any device, Siagri said.

“It used to take months and even years to plan, procure, and deploy IT infrastructure to connect embedded devices to the network and capture valuable data,” Siagri said. “Today you can do it in minutes.”

Research Spending

“We’ll keep investing in growth and R&D to increase the value of the company and its share price,” Siagri said. After the company returns to profit at the net level, it may consider paying a dividend “if there’s room.”

Eurotech’s products include high-performance computers, embedded boards and portable, nano devices such as wrist-wearable computers. Its rugged handheld mobile computers, which are resistant to extreme temperature, vibrations and water, are used in logistics, transportation, health-care, defense and security industries.

Eurotech, whose clients include Lockheed Martin Corp. and Johnson Controls Inc., generates almost half of its revenue in the U.S., where it plans to sign clients for its new cloud services “soon,” Siagri said.

In September, Eurotech signed an accord with Intel Corp.’s Wind River Systems Inc. unit, a maker of operating systems used in machines including cars and wireless handsets, to collaborate and “speed embedded application development.”

To contact the reporters on this story: Chiara Remondini in Milan at cremondini@bloomberg.net

To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net.

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