Sify Technologies announces Q3 results

By siliconindia   |   Wednesday, 23 January 2008, 02:40 IST
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Chennai: Sify Technologies, a Consumer Internet and Enterprise Services firm announced today its consolidated U.S. Generally Accepted Accounting Principle (GAAP) results for the third quarter ended 31st December 2007. The company reported revenues of $ 38.38 million for the third quarter ended on 31st December 07, 2.8 percent higher than the previous quarter, and 8.7 percent higher compared to the same period last fiscal. Sify's Profit before tax and exceptional items was $2.23 million versus $1.09 million in the previous quarter. Post exceptional items, the Profit After Tax (PAT) for the quarter was $1.55 million as compared to the previous quarter?s net Loss of $1.26 million. Adjusted EBITDA was $5.03 million as compared with $3.94 million in the preceding quarter. Adjusted EBITDA for the same period last year was $4.14 million. Sify ended the quarter with a cash balance of $42 million after capital expenditure of $5.94 million during the quarter. "We have done well to grow sequentially, driven by growth in our Enterprise businesses. The restructuring of our Consumer businesses into a single integrated platform for access and delivery of multiple content services including ecommerce, eLearning, entertainment and online games is underway, and will take approximately four to six months to complete. This includes new technologies that will allow us to scale as the demand for rich graphic and video content grows. We will re-launch the Consumer business when ready to scale our revenues," said Raju Vegesna, Board Chairman and CEO & MD, Sify Technologies. "To meet demand, we are investing in expanding our network, as well as building a new data center in Mumbai. We are also planning to invest in a data center in Delhi, as well as investing in land in Chennai where Sify's headquarters, with sophisticated data centers and network command centers, will be developed," he added. "Revenues, EBITDA and net profit have all shown growth based on operations on the back of aggressive growth in enterprise services. As we move to building an integrated platform for consumer services delivery, we will review non-performing cyber caf?and home broadband access locations. Investments for growth are being made to meet growing demand from enterprise customers for both connectivity and hosting services. The Consumer business will also benefit as new cities open up for cybercaf?and broadband services," said MP Vijay Kumar, CFO, Sify. The company has received many strategic alliances with companies like Barclays bank, Esselpropack and Onmobile. Substantial MPLS network augmentation contracts from Kotak Life, National Stock Exchange and Vishal Retail. The company has also signed e-Learning contract with insurance firm ICICI Prudential, document management contract signed with Reliance Life; and Data Center Hosting contract signed with Indian Overseas Bank.