Processing .....please wait.. 
The article has been forwarded.... 
netGuru posts $403,000 net loss in Q1
By siliconindia
|
Wednesday, 06 August 2003, 19:30 IST
CALIFE: netGuru Inc., an integrated information technology and services company, on Wednesday reported that its net revenues for the first quarter ended June 30, 2003, were $4.39 million versus $4.42 million in the comparable quarter of the prior year.
For the quarter ended June 30, 2003, netGuru reported a net loss of $403,000, or $0.02 per diluted share, compared with a net loss of $1,070,000, or $0.06 per diluted share for the same period in the prior year.
Net revenues decreased slightly by $26,000 or approximately 0.6% compared with the same period in the prior year. netGuru's core engineering and collaborative software products and services net revenues increased 45.5% or $851,000, offset by a decline both in the IT services net revenues and Web-based telecom and travel services net revenues of 14.6% and 59.2%, respectively, compared with the same period in the prior year.
About half of the increase in the engineering and collaborative software products and services net revenues was due to the completion of a large contract. The decline in the IT services net revenues was due to the continued lack of demand in the IT services market. Web-based telecommunications and travel services net revenues declined due to a decline in the wholesale telephony business as well as lower revenues from the travel services business.
The travel services net revenues were lower because the company recognized revenues from tickets sold as a ticket consolidator net of purchase costs, since the company did not renew its purchase commitment on such tickets. Under these terms the company previously had inventory risk, which allowed gross revenue treatment in the comparable prior quarter.
Overall gross profit margins increased to 64.5% in the quarter ended June 30, 2003 from 46.7% during the same period in the prior year. Gross profit margin from engineering and collaborative software products and services increased to 86.2% from 84.4% as a result of increased sales with cost staying relatively flat. Gross profit margin from the IT services business remained flat at 23.9% reflecting a decrease in cost proportionate to the decline in net revenues.
Gross profit margin from Web-based telecommunication and travel services increased to 43.2% from 12.8% during the same period in the prior year due to (1) better pricing for the purchase of telephony minutes, (2) reduced focus on the higher cost wholesale telephony business and (3) better gross profit margin from travel services since the revenues from tickets sold as a ticket consolidator were recognized net of costs in the current period.
"We are pleased that our renewed focus on our core engineering and collaborative software segment is beginning to yield results. In the first quarter ended June 30, 2003, we were delighted to be selected by Fuji Xerox of Singapore and Oracle India as their collaborative solutions partner," said Amrit Das, netGuru's chairman and CEO.
"We are also pleased that our continuing efforts to control costs have resulted in the lowest total operating costs during quarter ended June 30, 2003, compared to the previous 12 quarters," Das continued. He added, "As can be seen by our financials, our operational loss is near breakeven if non-cash items are considered."
