The Hindu : Business : Sify reduces losses

Online edition of India's National Newspaper
Tuesday, Jul 20, 2004

Business

Business

Sify reduces losses

By Our Special Correspondent

CHENNAI, JULY 19. Sify Limited, an Internet, network and e-commerce services company, today reported a cash profit (in adjusted earnings before interest, tax, depreciation and amortisation terms) of $1.65 million during the quarter ended June 2004 against a cash loss of $1.39 million for the same quarter last year and a cash profit of $2.59 million in the immediately preceding quarter.

Sales revenue during the quarter was placed at $16.91 million, an increase of 29.4 per cent over the same quarter last year, but 5.7 per cent lower than the revenues in the immediately preceding quarter.

The company incurred a net loss of $1.19 million during the quarter, compared to a net loss of $4.50 million for the same quarter last year. Sify made a profit of $0.51 million in the immediately preceding quarter ended March 31, 2004, which included a one-time gain of $1.37 million on the sale of its interest in Wisden CricInfo.

The company generated $0.47 million in cash from operations during the quarter after capital expenditures of $1.81 million.

Sify ended the quarter with a cash balance of $32.2 million.

R. Ramaraj, Managing Director and CEO, said in a release "the company has expended significant effort and costs to prepare itself for growth in our operations. We expect that our performance during the rest of the year will show the results of those efforts. In particular, we hope to grow our presence in broadband Internet access and managed international infrastructure services." According to George Zacharias, President and COO, price reductions in dial-up and a drop in one-time revenues in cyber cafes had lowered revenues.

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