Hexaware Technologies Refutes Patent Lawsuit, Affirms Confidence in Proprietary Platforms

Hexaware Technologies Limited , a global IT solutions provider, has firmly responded to a patent lawsuit filed by Natsoft Corporation and its affiliate, Updraft LLC. The company has categorically denied all allegations, describing the lawsuit as meritless and expressing confidence in its legal position.

Key Points of Hexaware's Response

Hexaware denies all claims made in the lawsuit
The company believes the legal action will not significantly impact its operations or financial health
Hexaware plans to vigorously defend its position through proper legal channels
The company is considering all available options, including challenging the validity of the asserted patents and filing a motion to dismiss the complaint

Platforms Under Scrutiny

The lawsuit implicates three of Hexaware's proprietary platforms:

Amaze®
Tensai®
RapidX™

Hexaware maintains that these platforms are the result of original engineering, involving years of in-house research and development and significant financial investment. The company asserts that its products offer more advanced functionalities than those claimed in the patents involved in the lawsuit.

Executive Statement

Srikrishna Ramakarthikeyan, CEO of Hexaware, stated, "Intellectual property disputes are an inevitable part of the technology industry's relentless pace of innovation. Many successful service providers have faced patent claims as they pioneered new solutions and transformed markets. Our clients rely on us to modernize mission-critical systems with speed, safety, and clear outcomes. Nothing about this filing changes that."

Platform Specifics

Hexaware provided details on the platforms in question:

Platform	Description	Key Features
Amaze®	Modernization platform	- Refactors and migrates legacy applications - Preserves existing business logic - Decomposes monoliths into microservices
Tensai® ATOP	Automation and assurance platform	- Spans cloud-native operations - Provides unified dashboards - Offers advanced data visibility
RapidX™	GenAI-era platform	- Creates detailed X-ray of business logic in legacy code - Converts into modernization blueprint - Generates new code guided by legacy code blueprint

Intellectual Property Protection

Hexaware highlighted its own intellectual property efforts, noting that it has successfully filed and obtained patent protection for some methods embodied in Amaze® and Tensai®. The company recently received a Notice of Allowance for a U.S. patent related to the Tensai® product.

Looking Ahead

Despite the legal challenge, Hexaware anticipates no material change to its operations, ability to serve customer commitments, partner programs, or financial position as a result of this lawsuit. The company remains focused on delivering value to its clients and maintaining its position in the competitive IT solutions market.

As this legal matter unfolds, stakeholders will be watching closely to see how it might impact Hexaware's market position and its ongoing innovation efforts in the rapidly evolving tech landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.39%	-5.21%	+2.52%	-1.73%	-9.86%	-9.86%

Hexaware Technologies , a global IT solutions company, has recently taken a significant step in addressing a financial dispute with one of its European clients. The company has initiated mediation proceedings regarding $9 million in receivables, demonstrating its commitment to resolving the issue through a structured process.

Key Details of the Mediation Process

Aspect	Details
Opposing Party	Client based in Europe
Mediation Agency	Located in the US
Claim Amount	USD 9.00 million
Financial Implications	Fully provided for, no downside risk
Expected Outcome	Company anticipates a favorable result

Background and Implications

The dispute, which was initially disclosed during an earnings call following the board meeting on July 24, 2023, has now progressed to a formal mediation process. Both Hexaware Technologies and the European client have filed a mediation application with a US-based Mediation Agency, signaling a mutual intent to resolve the matter amicably.

Financial Considerations

Hexaware has taken a prudent approach to this situation:

The company has fully provided for the claimed amount of $9.00 million.
Management states there is no downside risk associated with this dispute.
Hexaware expresses optimism, indicating that a favorable outcome could be profit-accretive.

Looking Ahead

While the mediation process is underway, Hexaware Technologies continues to focus on its core business operations. The company recently appointed Eravi Gopan as President and Global Head of High Tech, Products, and Platforms, showcasing its commitment to growth and innovation in the tech sector.

Investors and stakeholders will be keenly watching the outcome of this mediation, as a positive resolution could potentially boost the company's financial position. However, it's important to note that the process and its timeline remain subject to the mediation proceedings.

Hexaware Technologies maintains its transparency with investors, having disclosed this information in compliance with SEBI regulations. The company's proactive approach to addressing and resolving client disputes reflects its commitment to maintaining strong business relationships and financial integrity.

As the situation develops, further updates are expected to be provided through appropriate channels, keeping stakeholders informed of any material developments in this matter.