SIFY reports US GAAP results for the Quarter ended 30th September 2002.Business Editors CHENNAI, India--(BUSINESS WIRE)--Oct. 12, 2002 SIFY posts 15% revenue growth Q on Q, 24% reduction in cash losses; Accelerates growth in Corporate Services Activities that combine or consolidate certain enterprise-wide needed support services, provided based on specialized knowledge, best practices, and technology to serve internal (and sometimes external) customers and business partners. , extends leadership in this business Satyam Infoway Limited (Nasdaq:SIFY), India's premier Internet, networking and eCommerce company, announced today its consolidated US GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). results for the quarter ended 30th September 2002. Performance highlights: -- Sales revenue grew by 14.9% over immediately preceding quarter -- The migration of Wipro's corporate network customers in a phased manner resulted in an increase in the size of the VPN customer base. Amongst others, large corporates such as ONGC, Godrej, Haldia Petrochemicals, ITC, Tata Tea and KPMG were added. -- During the quarter, other new customer wins in the VPN segment included companies such as UTI Worldwide, Baxter India, Kores India and TTK Heath care. Repeat orders from Hutch, General Electric and Lucent augmented Sify's dominance in the VPN market space. -- Broadband initiatives for corporates resulted in many customer acquisitions for providing last mile solutions on wireless broadband. -- Voice-enabling of ExpressMeet, Sify's proprietary web conferencing tool, for a user friendly, cost-effective voice and collaborative conferencing solution. -- An upgraded version of the web based interactive Network Management System within Sify was activated. Mr R Ramaraj, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. & MD said, " I am pleased with two trends in our performance this quarter. One: 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 See how to access the Internet. business with improving ARPUs and reduction in bandwidth costs. Sify'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".
Summarized Results:
( In $ million, all translated at $1 = Rs. 48.40 )
Particulars Quarter Ended Quarter Ended Year Ended
30 September 30 June 31 March
2002 2001 2002 2002
Corporate Services 5.01 4.31 4.36 16.37
Retail Internet Access 3.11 2.95 2.83 10.81
Interactive services 0.91 1.04 0.78 4.24
Others 0.55 0.18 0.38 1.11
Sales Revenue 9.59 8.48 8.36 32.54
Cash loss (EBITDA) (1) 3.16 4.81 4.19 20.31
Net Loss (2) 9.00 115.50 8.80 147.90
Cash Loss per ADR ($/ADR) (3) 0.14 0.21 0.18 0.88
Net Loss per ADR ($/ADR) (3) 0.39 4.98 0.38 6.37
(1) Cash loss relates to Earnings before interest, tax, depreciation and amortization. This is not part of the certified financial statements Certified financial statements Financial statements that include an accountant's opinion. published under US GAAP. (2) Net loss for Sep 2002 includes a one off depreciation charge of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 2.4 million in respect of assets of Satyam Institute of E-Business that has not commenced operations. (3) Calculated based on the current ratio of one ADR ADR - Astra Digital Radio equal to one equity share Corporate Services: Corporate services continues to be the mainstay of Sify's business model, accounting for 52% of sales revenue. The IDC Report of September 2001 had stated that Sify was the clear leader in VPN (Virtual Private Network) A private network that is configured within a public network (a carrier's network or the Internet) in order to take advantage of the economies of scale and management facilities of large networks. services in India, followed by Wipro. Sify's acquisition of Wipro's customers and aggressive acquisition of new customers has extended Sify's leadership further in this market. -- Sales revenue grew by 14.9% over immediately preceding quarter -- The migration of Wipro's corporate network customers in a phased manner resulted in an increase in the size of the VPN customer base. Amongst others, large corporates such as ONGC, Godrej, Haldia Petrochemicals, ITC, Tata Tea and KPMG were added. -- During the quarter, other new customer wins in the VPN segment included companies such as UTI Worldwide, Baxter India, Kores India and TTK Heath care. Repeat orders from Hutch, General Electric and Lucent augmented Sify's dominance in the VPN market space. -- Broadband initiatives for corporates resulted in many customer acquisitions for providing last mile solutions on wireless broadband. -- Voice-enabling of ExpressMeet, Sify's proprietary web conferencing tool, for a user friendly, cost-effective voice and collaborative conferencing solution. -- An upgraded version of the web based interactive Network Management System within Sify was activated. Sify became the single largest buyer to acquire on lease from VSNL VSNL Videsh Sanchar Nigam Limited (India) an STM-1 fibre bandwidth link. Bulk of the Internet bandwidth customers moved to the state of the art STM-1 gateway with improved performance and quality of user experience. Consumer Business Division Access Media: The current quarter witnessed a wide penetration of Sify's Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. launched in the previous quarter across I-ways and retail channels. The usage has crossed 1 million minutes from introduction of the service. Broadband connectivity now spans 80% of the Sify's cyber (1) From "cybernetics," it is a prefix attached to everyday words to add a computer, electronic or online connotation. The term is similar to "virtual," but the latter is used more frequently. See virtual. cafes in the country making it the largest broadband access See broadband and wireless broadband. provider for consumers in India. Sify continues to be a strong player in the Retail Internet access at home through dial up services. Retail Internet subscribers at end of September 2002 was 600,000. Interactive Services: Re-launch of the popular Samachar news site, with a new look and feel and user friendly navigation has been well received by the global Indian community of Internet users Internet user n → internauta m/f Internet user Internet n → internaute m/f . This will help Sify consolidate its position as the most important window for them in the Internet space. Fresh funding of $ 20 million into Sify: SOFTBANK Asia Infrastructure Fund, through an investment arm, and VentureTech have agreed to invest USD 20.0 million into Sify by subscribing to fresh issue of equity. Under this agreement, USD 16.5 million is expected to be injected before 31 December 2002 and USD 3.5 million before 30 April 2003. The completion of these transactions is subject to receipt of approval of Sify's stockholders, Government of India The Government of India (Hindi: भारत सरकार [3]Bhārat Sarkār), officially referred to as the Union Government, and commonly as Central Government approvals and the satisfaction of other closing conditions. About Sify: Satyam Infoway Ltd. is the largest network and e-Commerce services company in India, offering end-to-end solutions (jargon) end-to-end solution - (E2ES) A term that suggests that the supplier of an application program or system will provide all the hardware and/or software components and resouces to meet the customer's requirement and no other supplier need be involved. Compare: turn-key solution. with a comprehensive range of products delivered over a common Internet backbone (communications, networking) Internet backbone - High-speed networks that carry Internet traffic. These communications networks are provided by companies such as AT&T, GTE, IBM, MCI, Netcom, Sprint, UUNET and consist of high-speed links in the T1, T3, OC1 and OC3 ranges. infrastructure. This Internet backbone reaches 53 points of presence in India, representing an estimated 90% of the established PC base in the country. A significant part of the company's revenue is derived from Corporate Services, which include corporate connectivity, network and communications solutions, security, network management services and hosting. As of September 30, 2002, a host of blue chip customers used Sify's corporate service offering. Sify's Consumer Internet Access business had, as of September 30, 2002, approximately 600,000 retail subscribers. The company's network services, data center operations and customer relationship management are accredited accredited recognition by an appropriate authority that the performance of a particular institution has satisfied a prestated set of criteria. accredited herds cattle herds which have achieved a low level of reactors to, e.g. ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001:2000. For more information about Satyam Infoway, visit www.sifycorp.com. Forward Looking Statements: This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Sify undertakes no duty to update any forward-looking statements. The securities proposed to be issued to Softbank and VentureTech have not been registered under the Securities Act of 1933, as amended, are being sold to non-U.S. persons in a private placement and may not be reoffered or resold except pursuant to a registration statement or an exemption from such registration requirements. This press release is neither an offer to sell nor the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to purchase any such securities. For a discussion of the risks associated with Satyam Infoway's business, please see the discussion under the caption "Risks Related to Our Business" in the company's report on Form 6-K for the quarter ended June 30, 2002 which has been filed with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities and Exchange Commission and is available by accessing the database maintained by the SEC at www.sec.gov. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion