OnMobile announced the results of its second quarter of fiscal year 2011, ended September 30, 2010. Revenue for the fiscal quarter was Rs 1,315 million, a 21 per cent increase versus the comparable period a year ago. Revenue at the end of the second quarter of fiscal year 2010 stood at Rs 1,086 million.

Financial Highlights (2nd Quarter Fiscal 2011 as compared to 2nd Quarter Fiscal 2010)

?   Revenue increased 21 per cent from Rs 1,086 million to Rs 1,315 million

?   EBITDA increased 106 per cent from Rs 135 million to Rs. 279 million

?   Operating margin increased 184 per cent from Rs 53 million to Rs 150 million

?   Net profit increased 131 per cent from Rs 99 million to Rs 228 million

?   Earnings per share increased 131 per cent from Rs 1.65 to Rs 3.81

Arvind Rao, chairman, CEO and managing director, OnMobile, said, ?The second quarter results highlight the growth that OnMobile continues to achieve over and above the market growth. Continued investment in broadening our technology portfolio exemplified through the acquisition of Dilithium Networks, and our geographic expansion, will help us sustain this momentum.?

Acquisition Highlights

OnMobile acquired the leading 3G video technology and mobile solutions, developed over eight years, by Silicon Valley-based Dilithium Networks Inc. Dilithium pioneered mobile video, authored the global standard for 3G video telephony, and is the largest customer validated 3G video solution for mobile operators globally including deployments in China Mobile, Vodafone Group, Yahoo, BSNL, Chunghwa Telecom, D2see, Echovox, Etisalat, France Telecom (Orange), Qualcomm, HTC, VTM Belgium, etc.

This acquisition will enable OnMobile to deploy Dilithium?s leadership technology in the rapidly expanding mobile video solutions space, leveraging OnMobile?s 2G and 2.5G VAS platforms embedded into the world?s leading telecom operators, – thereby accelerating their launch of 3G value added services.

The acquisition also provides OnMobile with Dilithium?s extensive patent portfolio – over 175 patents in some of the world?s most advanced video technologies. Dilithium?s technology enables the delivery of novel 3G Value Added Services by offering superior video quality and scale to the creation, adaptation and distribution of all types of multimedia assets across a wide range of handsets and networks.

Other Highlights

? OnMobile launched services in Mexico as the third country and the first large-scale deployment in the multi-country Telefonica project in LATAM. The current take rate for the RBT and Voice services in LATAM are running in line with expectations.

?    OnMobile expanded its footprint for the Mobile Box Office offering by signing on an additional four operators in India. This makes the MBO offering the leading audio cinema in the Indian market.

?    As part of out multi-operator project for Vodafone Global, OnMobile launched RBT service in Vodafone Egypt.  The early revenue traction is very encouraging with a doubling of the subscriber base in the first sixty days.

?    OnMobile won the contract to upgrade and replace the current RBT systems at MTNL for both Mumbai and Delhi.

?    OnMobile developed a handset-based antitheft solution with remote wipe and tracking capability that is gaining wide acceptance with consumers in a large operator in APAC.

?    With Android continuing to ramp world-wide, OnMobile expanded its sync and personal data management capability on that platform resulting in two wins for the PDM product in Western operators.

?    New offices were registered in Panama, Chile, Nicaragua and Spain to further expand and facilitate OnMobile?s LATAM and European operations.