Senetas Corporation, known for its information technology services, was unsuccessful in renewing a contract from Telstra Corporation. However, the company is optimistic the revenue loss will not affect its financial year.

A spokesperson of Senetas Corporation released a statement on Monday that a consulting contract with Telstra may not be renewed after June 30 this year.

Melbourne-based Telstra is a giant telecommunications company that deals on fixed phones, mobile, Internet, and Pay TV solutions.

Chairman Alan Stockdale of Senetas also said the company will not be affected by the revenue loss this fiscal year, which is the 12 months to June 30, 2010.

"The company expects that new consulting initiatives, recently won consulting bids and the performance of the company's security products division will help offset the revenue loss in 2011 and beyond," Mr Stockdale said in the statement.

Senetas hinted that the work may possibly be outsourced to an Indian-based consultancy.

Senetas is accredited for developing and supplying high speed network encryption technology products distributed through direct sales channels in Australian and New Zealand and provides consultancy services for information technology solutions and management. Its customers include government departments in the USA, Middle East, Asia, and in European countries as well as other leading financial institutions.