Cranes Software's Q3 FY 2006 Consolidated Operating Revenues Higher by 40%; PAT up by 54% to Rs 154.4 Million; Consolidated 9M Revenue Up 34%; 9M Net Profit Increases by 50% to Rs. 421 Million.BANGALORE Bangalore (băng-gəlôr`), city (1991 pop. 2,651,000; metropolitan area 4,130,288), capital of Karnataka state, S central India, 3,000 ft (914 m) above sea level. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. -- Expands Vertical & Enterprise Wide Competencies for Company's Products Through Acquisitions of InventX Inc. and Karna
Karna (Sanskrit: कर्ण written Karṇa in IAST transliteration) is one of the central figures in Hindu epic Mahabharata. Softek India Cranes Software Cranes Software International Limited is a global scientific & engineering products and solutions provider. The Company's business interests straddle products, services, R&D in future technologies, training and high-end consultancy for engineers and scientist worldwide. International Ltd. (Cranes Software), a global scientific and engineering software solutions provider, today announced its unaudited results for the quarter and nine months ended December December: see month. 31, 2005. The Company's Board of Directors also approved the acquisitions of InventX, Inc. and Karna Softek India. Commenting on the performance, Asif Khader, Managing Director, Cranes Software International Limited, said: "Our financial performance in the reported period is indicative indicative: see mood. of the strong leverage derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. from focused strategies in the existing technical software products' space. While continuing to deliver on such localized Translated into the spoken language of the country. See localization. strategies and initiatives in each region of our focus, we have also enhanced our opportunities by expanding presence in the enterprise software segment. "The two acquisitions announced today take us closer to our objective of taking our widely acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. suite of products to global enterprises with a domain focus of identified verticals. While InventX adds to our portfolio a comprehensive and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. suite of integrated project management applications at the enterprise level, the Karna India acquisition gives us a head start within the banking and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. vertical, a key focus area for our enterprise-focused products. Cranes has a highly successful track record of using acquisitions to expand its range of competencies and we are confident that InventX and Karna India will create significant upsides upsides Adverb Informal, chiefly Brit (foll. by with)equal or level with, as through revenge for our business going forward." Cranes Software Group performance review: Nine - month review: 9M FY2006 (April - December 2005) v/s 9M FY 2005 (April - December 2004) --Operating revenues up by 34% to Rs. 1460.9 million compared to Rs. 1,088.9 million. --Operating profit higher by 79% at Rs. 877.0 million from Rs. 490.7 million. --Net profit after tax increased 50% to Rs. 420.67 million from Rs. 280.0 million. Corresponding quarter performance: Q3 FY2006 (October October: see month. - December 2005) v/s Q3 FY 2005 (October - December 2004) --Operating revenues up by 40% to Rs. 512.3 million compared to Rs. 364.8 million. --Net profit after tax higher by 54% to Rs. 154.4 million from Rs. 100.6 million. --EPS on higher share capital, restated, up at Rs. 1.37 compared to Rs. 0.99 (previous period figure adjusted for Bonus Issue and Stock Split) Acquisition of InventX Inc. Cranes Software and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Systat SYSTAT is a statistics and statistical graphics software package, developed by Leland Wilkinson in the late 1970's, who was at the time an assistant professor of psychology at the University of Illinois at Chicago. Systat was incorporated in 1983 and grew to over 50 employees. Software Inc. have announced the acquisition of the ongoing business of the Texas-based, InventX, Inc. The consideration for the acquisition is to be paid in a phased manner to enable InventX to discharge To liberate or free; to terminate or extinguish. A discharge is the act or instrument by which a contract or agreement is ended. A mortgage is discharged if it has been carried out to the full extent originally contemplated or terminated prior to total execution. certain of its identified and specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. liabilities upto $ 1 million, together with issue of 1,000,000 equity shares of Cranes Software International Limited, of face value of Rs. 2/- to be made to InventX on or before October 2006. Details of the acquisition The acquisition comes with the IPR IPR Intellectual Property Rights IPR Inprocess/Inprogress Review IPR Industrial Property Rights IPR Institute for Policy Research (Northwestern University and University of Cincinnati) IPR Institute of Public Relations to InventX(TM) ePM, a project portfolio management solution, the sales and marketing rights for which had previously been acquired by Cranes, and InventX Inc. selected core management team. InventX(TM) ePM is a comprehensive and cost-effective suite of 100% web-based integrated project management applications. The software supports total communication, collaboration Working together on a project. See collaborative software. , and coordination coordination /co·or·di·na·tion/ (ko-or?di-na´shun) the harmonious functioning of interrelated organs and parts. co·or·di·na·tion n. 1. The harmonious adjustment or interaction of parts. of an organization's geographically ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge diverse personnel and project resources to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. the potential for project success. Some of InventX Inc's existing customers include Texas Instruments See TI. (company) Texas Instruments - (TI) A US electronics company. A TI engineer, Jack Kilby invented the integrated circuit in 1958. Three TI employees left the company in 1982 to start Compaq. , World Vision, Novartis Novartis International AG (NYSE: NVS) is a multinational pharmaceutical company based in Basel, Switzerland that manufactures drugs such as diclofenac (Voltaren), carbamazepine (Tegretol), valsartan (Diovan), imatinib mesylate (Gleevec / Glivec), cyclosporin A (Neoral / , Dell and Target. Acquisition rationale rationale (rash´  nal´),n the fundamental reasons used as the basis for a decision or action. The InventX acquisition will enable Cranes to make a strong entry into the enterprise products space. The post-acquisition integration process will be facilitated by the fact that Cranes already provides product development and implementation support for InventX(TM) ePM through a dedicated development center. This involves product upgrades; customer and implementation support; and technical and after sales support across the global customer base. Cranes will manage the entire life-cycle life-cycle - software life-cycle for the InventX product in line with its defined roadmap A roadmap may refer to:
The InventX ePM(TM) product acquisition will also allow Cranes to further leverage the extensive reach of its global sales and distribution network in 33 countries through direct offices and distributor / re-seller relationships to 360,000 existing users of its scientific and engineering software products. Acquisition of Karna Softek India Cranes has announced the acquisition of selected ongoing business undertaken by Karna Softek India Pvt. Ltd. (Karna India), the wholly owned subsidiary and Indian development center of Delaware- based Karna Global Technologies. Cranes will pay a consideration not exceeding Rs. 42 million in cash for the acquisition which includes an amount of Rs. 22 million towards discharge of identified liabilities in respect of the acquired business. Details of the acquisition The development team of Karna-India has, over the last few years, developed e-banking software for its international customers, hence creating a strong team of domain experts in the Banking and Financial Services (BFS BFS Bundesamt Für Statistik BfS Bundesamt für Strahlenschutz (German: federal office for radiation protection) BFS Bowling for Soup (band) BFS Bankable Feasibility Study BFS British Fertility Society ) field. This acquisition provides Cranes with access to a comprehensive banking product suite and ongoing relationships with present and prospective customers for product development and deployment Installing, setting up, testing and running. This military term, which means the placement of troops and equipment in the field, is widely used with computers as an alternate to the word "implementation. particularly in the BFS segment. Karna also has some significant customer relationships, with strong visibility within the high growth Middle East region, which is to transition to Cranes following the acquisition. Acquisition rationale The Karna India acquisition will spearhead Cranes' entry into the BFS sector by leveraging upon Karna's expertise in this space. This acquisition blends with Cranes' strategy of leveraging existing competencies to offer its range of products to global enterprises within its focus technologies / domains. Banking and Financial Services has been identified as a core vertical to be aggressively addressed by Cranes as part of its growth strategy in domain specific product development and the acquisition of customer relationship and personnel with domain knowledge from Karna India provides a strong initial base from where the presence can be extended. Key corporate highlights for Q3 FY2006: --Middle East operations launched in a JV with the Kanoo Kanoo (كانو in Arabic) is the family name of an Arab business family, controlling the Yusuf Bin Ahmed Kanoo Group. The family is based in Bahrain, and has wings in several Persian Gulf countries controlling the family's business interests. Group: Cranes launched its Middle East operations in collaboration with the Kanoo Group to offer customized solutions in its product domains and services in the areas of analytics, enterprise project and portfolio management, Six Sigma Not to be confused with Sigma 6. Six Sigma is a set of practices originally developed by Motorola to systematically improve processes by eliminating defects.[1] A defect is defined as nonconformity of a product or service to its specifications. consulting and enterprise applications by leveraging its own products, IP's and capabilities. Cranes will draw upon the Kanoo Group's brand equity, wide reach and vast network of partners and clients to expand its business in the Middle East, a key growth market for its software products. --Cranes ranked among Asia's fastest growing Technology Companies: Cranes was recognized as one of the fastest growing technology companies in the Asia Pacific region by Deloitte Technology Fast 500 Asia Pacific 2005 program for the third year in succession succession: see ecology. . Cranes' revenues grew 165% during the two year assessment period (FY 2003 to FY 2005). Prior to that, the inaugural Deloitte Technology Fast 50 India Program also recognized Cranes as one of the 50 fastest growing companies in India. --Cranes commended at NASSCOM NASSCOM National Association of Software and Service Companies (India) Product Summit 2005 Cranes Software was awarded the "Distinguished Application Product Company Award" by the NSRCEL, Indian Institute The Indian Institute in central Oxford, England is located at the north end of Catte Street on the corner with Holywell Street and faching down Broad Street from the east.[1] of Management, Bangalore (IIMB IIMB Indian Institute of Management, Bangalore (India) ) under the aegis aegis (ē`jĭs), in Greek mythology, weapon of Zeus and Athena. It possessed the power to terrify and disperse the enemy or to protect friends. of NASSCOM Product Forum. Cranes Software was judged on the basis of its product range, financial performance, senior management team, alliance partnerships and market share. --Cranes flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. SYSTAT received the "Statistics 2005 Products of the Year" Scientific Computing computing - computer & Instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. (SCI (Scalable Coherent Interface) An IEEE standard for a high-speed bus that uses wire or fiber-optic cable. It can transfer data up to 1GBytes/sec. (hardware) SCI - 1. Scalable Coherent Interface. 2. UART. ), a leading publisher of technical information for the scientific community, recognized SYSTAT as a "Statistics 2005 Products of the Year" Winner. SYSTAT was selected as one of the winners in the magazine's "Products of the Year for 2005" program on the basis of readers' response over the past year and on feedback from the Editorial Board. SYSTAT has continued to win accolades for being a desktop statistics package with a variety of standard and advanced statistical features. In 2004, SYSTAT was judged to be among the "Top 5 Products by Scientific Computing & Instrumentation. Systat Software Inc., Cranes Software's 100% subsidiary, was rated as a 'Technology Leader' for 2003 & 2004 by SCI. About Cranes Software International Limited Cranes Software is a global scientific & engineering products and solutions provider. The Company's business interests straddle In the stock and commodity markets, a strategy in options contracts consisting of an equal number of put options and call options on the same underlying share, index, or commodity future. products, services, RD in future technologies, training and high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. consultancy for engineers and scientist worldwide. Focused on the scientific and engineering community, Cranes Software has addressed the needs of a variety of customer groups ranging from large multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) companies to government, defence, educational and research institutions for over a decade. Today, Cranes Software has its presence in 33 countries across the world and has a user base of more than 360,000. Cranes Software also offers world-renowned world-re·nowned adj. Widely known and acclaimed. solutions from reputed reputed adj. referring to what is accepted by general public belief, whether or not correct. principals such as The Mathworks MathWorks - The MathWorks, Inc. , Texas Instruments, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) through product alliances. With a mission statement to provide its customers the best in scientific technology and to enable its customers to define new limits, Cranes Software is setting new standards in the scientific and engineering field. For further information on the company, please visit www.cranessoftware.com
CRANES SOFTWARE INTERNATIONAL LIMITED
Regd. Office : 4th Floor, Block I, Shankar Narayana Building, #25,
M G Road, Bangalore - 560 001
Unaudited Financial Results(Provisional) for the Quarter and
Period Ended 31st December, 2005
Particulars
Three Months Ended
-----------------------------------------------
31.12.2005 31.12.2004 31.12.2005 31.12.2004
----------- ----------- --------- -------------
Consolidated
-----------------------
SL.NO. (1) (2) (3) (4) (5)
1 Net Sales/Services:
Overseas 3,426.98 2,017.15 3,869.01 2,910.34
Domestic 1,190.65 736.75 1,254.04 737.52
2 Other Income 153.00 - 167.61 -
----------- ----------- --------- -------------
Total Income 4,770.63 2,753.90 5,290.66 3,647.86
3 Total Expenditure:
a) (Increase) /
Decrease in Stock 11.72 122.29 11.59 129.61
b) Material Cost 508.10 483.50 1,022.84 598.61
c) Personnel
Expenses 597.27 162.19 513.18 531.19
d) General &
Administrative
Expenses 480.15 336.40 502.90 513.82
4 Interest 302.91 224.30 304.30 233.01
5 Depreciation 623.38 387.69 723.40 518.02
6 Profit before tax 2,247.10 1,037.53 2,212.45 1,123.60
7 Provision for tax
including deferred
tax 665.60 103.90 661.98 118.04
8 Provision for
Fringe Benefit Tax 5.87 - 6.04 -
9 Profit After tax 1,575.63 933.63 1,544.43 1,005.56
10 Paid up Equity
share capital of
Rs.2/- each 2,273.36 1,016.68 2,273.36 1,016.68
11 Reserves excluding
Revaluation
Reserves -
12 Basic & Diluted
Earning per Share
(Rs.) 1.40 0.92 1.37 0.99
13 Aggregate of Non-
Promoter
Shareholding
- Number of Shares 70,474,970 33,237,485
- Percentage of
Shareholding 62.00% 65.38%
Particulars
Nine Months Ended
-----------------------------------------------
31.12.2005 31.12.2004 31.12.2005 31.12.2004
------------- ----------- ---------- ----------
Consolidated
---------------------
SL.NO. (1) (6) (7) (8) (9)
1 Net Sales/Services:
Overseas 9,537.06 6,171.23 11,276.44 8,800.40
Domestic 3,142.55 2,084.75 3,332.43 2,088.54
2 Other Income 278.84 178.66 382.74 493.01
------------- ----------- ---------- ----------
Total Income 12,958.45 8,434.64 14,991.61 11,381.95
3 Total Expenditure:
a) (Increase) /
Decrease in Stock (30.25) (316.06) (22.80) (310.85)
b) Material Cost 1,853.92 2,575.02 2,404.00 3,017.15
c) Personnel
Expenses 1,051.36 423.87 1,921.79 1,446.66
d) General &
Administrative
Expenses 1,252.07 1,003.83 1,535.91 1,828.92
4 Interest 865.95 755.47 870.08 771.22
5 Depreciation 1,722.31 949.56 2,046.41 1,342.87
6 Profit before tax 6,243.09 3,042.95 6,236.22 3,285.98
7 Provision for tax
including deferred
tax 2,002.24 411.10 2,016.64 487.21
8 Provision for
Fringe Benefit Tax 11.48 - 12.78 -
9 Profit After tax 4,229.37 2,631.85 4,206.80 2,798.77
10 Paid up Equity
share capital of
Rs.2/- each 2,273.36 1,016.68 2,273.36 1,016.68
11 Reserves excluding
Revaluation
Reserves - -
12 Basic & Diluted
Earning per Share
(Rs.) 4.02 2.59 4.00 2.75
13 Aggregate of Non-
Promoter
Shareholding
- Number of Shares 70,474,970 33,237,485
- Percentage of
Shareholding 62.00% 65.38%
Particulars
Year ended Consolidated
31.03.2005 31.12.2004
(Audited) (Audited)
SL.NO. (1) (10) (11)
1 Net Sales/Services:
Overseas 9,306.90 12,419.97
Domestic 3,881.25 3,918.48
2 Other Income - -
Total Income 13,188.15 16,338.45
3 Total Expenditure:
a) (Increase) /
Decrease in Stock (377.41) (335.28)
b) Material Cost 3,044.17 3,258.81
c) Personnel
Expenses 517.80 1,573.90
d) General &
Administrative
Expenses 1,471.61 2,558.71
4 Interest 1,079.21 1,088.03
5 Depreciation 1,676.79 2,239.23
6 Profit before tax 5,775.97 5,955.04
7 Provision for tax
including deferred
tax 1,288.27 1,352.22
8 Provision for
Fringe Benefit Tax - -
9 Profit After tax 4,487.70 4,602.82
10 Paid up Equity
share capital of
Rs.2/- each 1,016.68 1,016.68
11 Reserves excluding
Revaluation
Reserves 14,564.02 14,676.55
Basic & Diluted
12 Earning per Share
(Rs.) 4.41 4.53
13 Aggregate of Non-
Promoter
Shareholding
- Number of Shares 33,237,485
- Percentage of
Shareholding 65.38%
Segment-wise Revenue, Results & Capital Employed
Quarter Ended
-------------------------
Sl.No. Particulars 31.12.2005 31.12.2004
------ ---------------------- ------------ -----------
1 Segment Revenue:
a) Product Division 4,477.64 2,627.41
b) Training Division 139.99 126.49
Total 4,617.63 2,753.90
Less : Inter segment
Revenue -
Net Sales 4,617.63 2,753.90
Add: Other unallocable
Income 153.00 -
Total Income 4,770.63 2,753.90
2 Segment Results
(Profit(+)/Loss(-)
before tax and
interest from each
segment
a) Product Division 2,452.02 1,175.83
b) Training Division 97.99 86.00
Total 2,550.01 1,261.83
Less : i) Interest 302.91 224.30
ii) Other
unallocable
expenditure
net off -
unallocable
income
Total Profit Before
Tax 2,247.10 1,037.53
3 Capital Employed
(Segment assets-
Segment Liabilities)
a) Product Division 32,988.65 14,912.87
b) Training Division 1,069.55 718.19
Total 34,058.20 15,631.06
Nine Months Ended Year
Sl.No. Particulars ended
31.12.2005 31.12.2004 31.03.2005
(Audited)
------ ---------------------- ------------- ------------ ------------
1 Segment Revenue:
a) Product Division 12,230.47 7,876.65 12,691.76
b) Training Division 449.14 379.33 496.39
Total 12,679.61 8,255.98 13,188.15
Less : Inter segment
Revenue - -
Net Sales 12,679.61 8,255.98 13,188.15
Add: Other unallocable
Income 278.84 178.66 -
Total Income 12,958.45 8,434.64 13,188.15
2 Segment Results
(Profit(+)/Loss(-)
before tax and
interest from each
segment
a) Product Division 6,792.70 3,569.10 6,623.05
b) Training Division 316.34 229.32 232.13
Total 7,109.04 3,798.42 6,855.18
Less : i) Interest 865.95 755.47 1,079.21
ii) Other
unallocable
expenditure
net off - -
unallocable
income
Total Profit Before
Tax 6,243.09 3,042.95 5,775.97
3 Capital Employed
(Segment assets-
Segment Liabilities)
a) Product Division 32,988.65 14,912.87 24,905.89
b) Training Division 1,069.55 718.19 984.47
Total 34,058.20 15,631.06 25,890.36
Notes
1. The above results have been reviewed by the Audit Committee and
taken on record by the Board of Directors at its meeting held on
30th January 2006.
2. The Statutory auditors have conducted a limited review of Accounts
for the aforesaid period
3. The entire Income relates to income from Software Business
4. The segment report is prepared in accordance with the Accounting
Standard - 17 "Segment Reporting" issued by the Institute of
Chartered Accountants of India.
5. The consolidated results have been prepared in line with the
requirements of Accounting Standards - 21 "Consolidated Financial
Statements".
6. There were two investor complaints at the beginning of the quarter.
These have since been resolved. There were no compliants pending at
the end of the quarter.
7. The Board has alloted 12,00,000 equity shares of Rs.10 each at a
price of Rs.900 per share on preferential basis to
promotors/strategic investors on 11th Oct,2005. The Company raised
Rs.108 Crores from this issue. Pending utilisation, the same has
been kept in a Term Deposit with the Bank.
8. At the AGM held on 27th September 2005, the members have approved a
stock split of 5 : 1 and a bonus issue of 1:1. Both these have been
actioned during the quarter.
9. The consolidated results include results of following:
Name of Company % holding Holding Company
---------------------------------- ----------- ----------------------
Systat Software Asia Pacific Ltd %100 Cranes Software
International Ltd
---------------------------------- ----------- ----------------------
Systat Software Inc. USA %100 Cranes Software
International Ltd
---------------------------------- ----------- ----------------------
Systat Software UK Ltd. %100 Systat Software Inc.
USA
---------------------------------- ----------- ----------------------
Cranes Software International Pte %100 Cranes Software
Ltd International Ltd
---------------------------------- ----------- ----------------------
Systat Software GmbH %100 Cranes Software
International Ltd
---------------------------------- ----------- ----------------------
EMRC Engineering Mechanics %100 Cranes Software
Research (India) Ltd International Ltd
---------------------------------- ----------- ----------------------
10. As part of the restructuring exercise, the business of Systat
Software Asia Pacific Ltd has been taken over by the Company with
effect from 20th December, 2005.
11. In view of the subdivision of equity shares and issue of Bonus
shares, EPS for the previous quarter / periods have been restated.
12. Previous period figures have been regrouped/reclassified
wherever necessary.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion