Sasken Full Year FY07 Revenues at Rs 477 crore, Services Business crosses $100M in annual revenues

Bangalore, April 20, 2007: Sasken Communication Technologies Limited (BSE:532663, NSE:SASKEN), a pioneer in telecom R&D and support outsourcing, today announced its consolidated results according to Indian GAAP for the fourth quarter and full year ended March 31, 2007.

Key Financial Highlights for Q4 FY07

• Average collection period stands at 74 days
• Revenue contribution from the Top five customers stood at 73.6% and from Top 10 customers at 86.3%
• Cash and cash equivalents stand at Rs. 34.9 crore as on March 31, 2007, compared to Rs. 42.5 crore as on December 31, 2006
• The consolidated Forex-hedged position on March 31, 2007 was US$ 53.9 Million
• Average realized rate for the quarter Rs 44/- per US$
• Dividend declared - 40%

Key Business Highlights for Q4 and Full Year FY07

• A net total of 107 people were added this quarter (Gross Adds of 290), taking the total employee strength to 3,611 as on March 31, 2007
• Utilization on the services side stands at 71.5%, for Q4; for the Full Year, the utilization was 75%
• The services business delivered an EPS of Rs 7.29/- for Q4 and Rs 26.84/- for the Full Year
• EBITDA Margins on the services side were at 20.7% for Q4 and 22.5% for the Full Year

Commenting on the performance, Rajiv Mody, Chairman & CEO, Sasken said, "The Sasken Group has delivered revenue growth of 55% and net profits have grown 93% for FY07 over FY06. The full year’s EPS stands at Rs 15.75/-, a growth of 73%. Our services business has delivered 62% growth rate in revenues and crossed a significant milestone of $100M in revenues for the full year. Our services EBITDA margins were at 22.5% for the Full Year. This is in line with the goals we had set for ourselves at the beginning of the year. One more of our key accounts has crossed $20M in annual revenues, with a third account very close achieving that milestone. This further vindicates our Tier 1 strategy,"

"Our focus this year has been to set the platform for profitable growth going forward. To this effect, we have significantly strengthened our leadership team. We are also firming up plans for entry into some new customer segments, and looking at expanding our offering portfolio. The Sasken Group’s focus continues to be the communications industry and we believe that we have the scale and the compelling value propositions to scale our business significantly," he added.

"We continue to track our products business on the basis of set milestones. The Design-In on the Application Framework Product with Lenovo Mobile is an important step forward for us. The NTT DoCoMo P903iX by PMC phone launch in April 2007 is another royalty-bearing engagement for us in the Japanese market. Going forward, we should see Design-Wins (phone launches) happen on the Multimedia Subsystem product with various customers, including a global Tier 1 customer, in the first quarter," Rajiv added.

The key senior management appointments made by the company in January 2007 were:

• Poonacha Machaiah - Senior Vice President, Worldwide Sales
• Rajesh Tyagi - Chief Technology Officer (Products and Services)
• Ranganath Puranik - Senior Vice President (Global Strategy & Business Development) & Chief Strategy Officer (Products & Services)
• Srinivasan Ramaraj - Senior Vice President, Services

Source : Equity Bulls

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