SIFY net profits jump 200% to $1.36 million

Sify Q1 Net Profits jump 200% to $ 1.36 Million Revenues grow by 29.1% over same quarter last year.

Chairman Mr. Raju Vegesna has been named as Managing Director & Chief Executive Officer. Mr. Vegesna brings Silicon Valley experience to post.

Chennai, India, Tuesday, 18th July 2006: Sify Limited (Nasdaq National Market: SIFY), a leader in consumer Internet and Enterprise Services in India with global delivery capabilities, announced today its consolidated US GAAP results for the first quarter ended 30th June 2006, and further announced that Chairman of the Board Mr. Raju Vegesna has been named as Sify´s Managing Director & Chief Executive Officer, replacing Sify´s Managing Director and Chief Executive Officer, Mr. R. Ramaraj, who has resigned from those posts to pursue other interests and opportunities. Mr. Ramaraj is in discussions with Sify and Mr. Vegesna to ensure a smooth transition and has agreed to be available to work as a consultant.

Q1 2006-07 Performance Highlights:

Sify reported revenues of $ 28.74 million for the quarter ended 30th June 2006, 29.1% higher than the quarter ended 30th June 2005. The sequential growth in revenues over the previous quarter was 2.5%.

Sify´s cash profit, in Adjusted EBITDA terms, for the quarter was $4.03 million, an increase of $3.71 million compared to the same quarter last year. See below for a reconciliation of Adjusted EBITDA to Sify´s U.S. GAAP operating results.

Sify´s net profit for the quarter under U.S. GAAP was $ 1.36 million compared to a net loss of $2.14 million in the first quarter of the previous fiscal year. The company reported net profits of $0.46 million in the previous quarter.

Sify ended the quarter with a cash balance of $ 55.27 million after capital expenditures of $6.7 million and the acquisition of Globe Travels, USA, during the fourth quarter.

Mr. Raju Vegesna, Board Chairman and newly appointed MD&CEO, Sify Limited, said, "We are pleased to report a net profit of $ 1.36 million for the first quarter with revenues growing by 29.1% over the June quarter 2005 to $28.74 million. We were also able to build momentum for the year by growing our revenues for the first quarter over the previous quarter. We continue to gain recognition for our services in India and internationally, and lead the market across businesses. We are well poised to continue growing them with new initiatives, adequate cash reserves and our cutting edge IP expertise".

Mr. Durgesh Mehta, Chief Financial Officer, Sify Limited, said, "During the last quarter we invested in a new Data Center in Bangalore to meet growing demand. We also completed the acquisition of Globe Travels, USA, to enhance revenue earning opportunities for our portals and the iWay Cyber Cafe chain. We intend to continue our growth trajectory by investing in such opportunities as well as in extending our Network Infrastructure and reach to service growing demand from both the Enterprise and Consumer segments".

Source : Equity Bulls

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