Sify Reports U.S. GAAP Results

Sify Limited announced today its consolidated US GAAP results for the first quarter ended 30th June 2007.

The company has  reported revenues of $ 34.6 million for the quarter , 6.6 % higher than the quarter ended 30th June 2006. The sequential growth in revenues over the previous quarter was (1.5%). Net loss for the quarter was $ 1.27 million compared to a net profit of $ 1.54 million in the same quarter of the previous fiscal year.

Net profit for the quarter was impacted due to  Provision for Doubtful Debts (PDD) on overdue amounts carried on the books for a period of time amounted to $ 1.28 million during the quarter, exchange loss of $ 0.4 million incurred on account of the stronger Rupee against the Dollar compared to exchange gain of $ 1.1 million in the same quarter of the previous fiscal year.

Cash profit earned by Sify  in Adjusted EBITDA terms, was $ 1.66 million compared to $ 4.55 million in the same quarter of the previous fiscal year. See below for a reconciliation of Adjusted EBITDA.The company ended the quarter with a cash balance of $ 46.7 million after capital expenditures of $ 6.71 million during the quarter

“I believe we have set in place the people and processes to scale the businesses going forwards over the next three quarters. We continue to forge alliances with global leaders such as Microsoft & NEC to offer solutions tailored to the needs of the Indian market to catalyze growth. We have also entered into an alliance with a large Indian infrastructure provider and the benefits of this association will be felt going forwards. During the last few quarters, we focused on integrating our enterprise businesses with the strategy of offering end-to-end managed services for companies in India. In the last Quarter we have forged our consumer offerings into a single integrated whole to unlock the synergies across our portal, the cyber cafes and broadband to home. We intend to market our services aggressively once our strategies are in place to accelerate growth, and for a larger share of the growing Indian market for the services we offer I am confident that the results of all these initiatives will see growth and profitability as planned for the year’ Raju Vegesna, Chairman & CEO, Sify, said .

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