Sify Technologies, a leader in enterprise and consumer internet services in India with global delivery capabilities, today announced its consolidated unaudited results under International Financial Reporting Standards (IFRS) for the second quarter of fiscal year 2010-11. The company reported revenue of US$38.16 million and net loss for the quarter of US$ 3.38 million. This compares with revenue of US$ 38.69 million and net loss of US$ 2.62 million in the year-ago quarter. The revenue and net loss for prior quarter were at US$ 38.46 million and US$ 3.33 million respectively. Gross margins improved to 38 per cent, up from 37 per cent for the previous quarter.
?We are pleased with the positive momentum generated by the recently launched Cloud Services and the increasing maturity of our new Enterprise Model,? said Raju Vegesna, CEO, Sify Technologies. ?Our efforts to configure the company as a delivery vehicle for managed services by vertical integration of Sify?s Private Cloud, technology infrastructure and business operations is progressing well. Our new alliances with world-class partners enhance our core competencies and enable us to deliver best-in-class solutions to our customers and our partners and their customers as we continue to focus on improved financial results. These alliances with major industry partners have been a matter of great satisfaction for us and with the start of our fully owned subsidiary, Sify Software Limited (SSL), we will begin to offer in-house products developed over open-source to our enterprise customers. We want to create solutions for our customers and elevate our services up by a notch?.
Sify launched its Cloud Services for Data Storage and Computing in a tie-up with Hitachi and HP in fourth quarter of fiscal 2009-10.
?Our International business has scaled up and is now contributing to 10% of the Company?s revenue?, said C.V.S. Suri, chief operating officer. ?Both the infrastructure management business and the eLearning business are venturing into new lines of activities; while the IMS business has added in its portfolio, hardware sales and systems integration along with IMS services, the eLearning business has started seeing traction with its customized LMS platform, having signed on its first customers. In the enterprise segment our effort is to deepen our relationship with existing customers with cloud offerings. On the consumer side, we have reached out with value packages to the SOHO and mini-business segments. Our residential broadband strategy will be around providing wireless services, following the success of our pilot in Chennai.?
?We are pleased to announce positive cash flows from operations amounting to US$ 0.62 million this quarter,? said M.P. Vijay Kumar, CFO, Sify. ?Positive cash flows from operations have been sustained over the last three quarters through better working capital management, and continued focus on better cost control, increasing productivity by better utilization of existing resources and ensuring profitability of on-going projects. A zero-based approach to every dollar of expenditure drives our efforts to generate better financial performance. We are increasingly focusing on tax-refunds, collections and quality procurement to give added support to our business teams. The company?s liquidity position is expected to be satisfactory with the infusion of capital.?
Sify reported in August 2010 that its promoter will infuse capital of US$ 86 million towards liquidity and expansion of the company?s operations.
