Sify posts $1.65 m cash profit in JQ

The Nasdaq-listed Sify Ltd, internet, network and e-commerce services company, has reported sales of $16.91 million for the quarter ending June 30, 2004, 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.

Sify registered a cash profit (in adjusted EBITDA terms) of $1.65 million during the quarter compared with 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.

The company incurred a net loss of $1.19 million during the quarter, compared with 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 Sify's interest in Wisden CricInfo. Sify generated $0.47 million in cash from operations during the quarter after capital expenditures of $1.81 million. The company has ended the quarter with a cash balance of $32.2 million.

R Ramaraj, managing director and CEO, said "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 these efforts. In particular, we hope to grow our presence in broadband internet access and managed international infrastructure services. We also continue to seek opportunities to grow our business internationally, and the recent acquisition of EAP is an early step in that direction. "

George Zacharias, president and COO, said, "Our corporate IP-VPN solutions continued to gain customers during the quarter. However, price reductions in dial-up and a drop in one-time revenues in cyber cafés lowered revenues. Our revenues in non-recurring hardware sales to the retail business also declined this quarter. Broadband subscribers, subscribers from the iWay cyber café chain, and Net telephony from iWays saw growth during the quarter". Corporate services, with a share of 56 pe cent ($9.53 m) this quarter, continues to be a key source of revenue for the company, followed by retail internet access with a share of 47 per cent ($6.34 m) of the topline.