Infosys McCamish reports first revenue decline in eight years

livemint.com:

MUMBAI : Infosys McCamish Systems LLC reported its first annual revenue decline in eight years following a ransomware attack and weak macroeconomic demand. Revenue at the wholly owned subsidiary of Infosys Ltd. fell 4.3% to $442 million in the year ended December 2023, according to the company’s annual report earlier this month.

“Revenue and margins of McCamish declined in FY2024 as a result of muted demand environment compounded by impact of ransomware attack," Kotak Institutional Equities analysts Kawaljeet Saluja, Satishkumar S, and Vamshi Krishna said in a note dated 18 June. Another analyst also attributed the revenue decline to the ransomware attack. “Revenues have fallen because of the cyber attack as the company had to pay off money to fix the damages," a Mumbai-based analyst said on condition of anonymity.

This was Infosys McCamish’s first revenue decline since the year ended March 2015. It switched to calendar year reporting in 2019. Parent company Infosys follows an April-to-March financial year.

Infosys bought Atlanta, Georgia-based McCamish Systems, which provides insurance process management solutions and services, through one of its six subsidiaries, Infosys BPO, for $58 million in December 2009. The revenue decline for one of Infosys’ first acquisitions adds fuel to the fire left by the ransomware attack on its systems reported in November 2023. The incident rendered services unavailable and led to unauthorised access to sensitive customer information.