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News >> Technology >>
Sify posts 15% Q2 growth
By siliconindia
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Tuesday, 15 October 2002, 19:30 IST
CHENNAI: Satyam Infoway Limited (Nasdaq: SIFY), IndiaÂ’s premier Internet, networking and eCommerce company, announced Monday that it has posted a sales revenue increase of 15 percent quarter on quarter.
The company also announced that its cash losses had reduced by a significant 24 percent to $3.2 million. Cash burn (net reduction in cash) also reduced to USD 3.2 million, which is 26 percent lower than last quarter.
Cash burn includes two one time elements: purchase consideration paid for acquisition of WIPROÂ’s corporate connectivity customers and the advance for procuring STM-1 fibre bandwidth paid to VSNL. The company also announced that it has entered into a definitive agreement with Softbank Asia Infrastructure Fund, through an investment arm and VentureTech to raise a further $20 million. Under the agreement, $16.5 million is expected to be injected before 31 December 2002 and USD 3.5 million by 30 April 2003.
R Ramaraj, chief executive officer and managing director said, "I am pleased with two trends in our performance this quarter. First, Sify extending its leadership in the corporate services business and growing its topline revenues. The second is the further reduction of losses in the retail Internet access business with improving ARPUs and reduction in bandwidth costs. SifyÂ’s strength in the market place and its potential are endorsed by two significant events in the quarter: Wipro opting to migrate its corporate customers for network services to Sify and exiting the business, and Softbank & VentureTech agreeing to invest $20 million into Sify."