Sify Reports Revenues of $ 38.28 Million for the Second Quarter of Fiscal Year 2009-10

Sify Reports Revenues of $ 38.28 Million for the Second Quarter of Fiscal Year
2009-10
Grows Revenues 17% Over Previous Year, Net Loss for the Quarter at $ 2.36
Million

CHENNAI, India, October 23 /PRNewswire-FirstCall/ -- Sify Technologies
Limited (Nasdaq National Markets: SIFY), a leader in Enterprise and Consumer
Internet Services in India with global delivery capabilities, announced today
its consolidated unaudited results under International Financial Reporting
Standards (IFRS) for the second quarter of the fiscal year 2009-10.
Performance Highlights:

- Revenues for the quarter were $ 38.28 million, 17 % higher than in the
same quarter of the previous year, and 12% higher than the preceding
quarter.

- Enterprise services registered strong growth from data centre, managed
voice and systems integration services. International services revenues
also registered strong growth. Consumer services revenues were lower
than previous quarters, with the focus on making the businesses
profitable, before growing subscribers and revenues.

- Net Loss for the quarter was $ 2.36 million as against a Net
Loss of $ 6.12 million in the same quarter in the previous year, and a
Net Loss of $ 3.35 million in the immediately preceding quarter on a
comparable basis. Net loss for the previous quarter was further subject
to a one-time beneficial tax adjustment of $ 1.83 million on account of
the merger of Sify Communications with Sify Technologies Limited.

- Capex during the quarter was $ 3.60 million on account of data centre
and network infrastructure expansion during the quarter.

Sify ended the quarter with a cash balance of $ 5.36 million.
Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify Technologies, said,
"We continue to grow our revenues with significant growth in Enterprise
services revenues. Enterprises are engaging us to help create new business
capabilities and significantly advance their business objectives over the
short, medium and long term. We continue to experience demand across data
center services, managed network services and managed voice services. On the
consumer front, we are seeing traction in the online advertising space and
expect it to continue going forward. We continue our initiatives to
consolidate and rationalize access services through cyber cafes and expect to
experience the positive effects of these initiatives in the coming quarters.
In consumer broadband services we have kept up our focus on new products, new
partners, customer upgradation and promotions."
Mr CVS Suri, Chief Operating Officer, Sify Technologies, said, "We have
seen significant growth in Enterprise services revenues during the quarter,
across all five business segments: managed network, data centre,
applications, managed voice and systems integration services. Systems
integration services, which were recently launched and include security
services, also contributed to this growth. On the consumer front, we continue
our thrust on new initiatives for online ad revenues such as video ads, and
we expect this to bear fruit in the coming quarters. Value added services
launched in our cyber cafes are seeing traction, and we expect these to
contribute to growth in the next quarter. We have launched new products and
promotions in broadband services which should contribute to growing revenues
in the following quarters."
Mr. MP Vijay Kumar, Chief Financial Officer, Sify, said, "We have done
well to continue to grow revenues and reduce operating losses by maintaining
fiscal discipline and operational excellence. The merger of Sify
Communications with Sify Technologies will further improve efficiencies in
operations and infrastructure utilization. Cost optimization initiatives
undertaken in the last few quarters have started yielding results and we will
also see the benefit of these going forward. The resilience of our business
model, backed by continuous review and strategic decisions to provide
increasing value to our customers, is the key to achieving profitability. We
are focused on prudent expansion and will fund it through some capital
recovery and sanctioned lines of credit."
Unaudited Consolidated income statement as per IFRS
(In $ million, all translated at $1 = Rs 48.04)
Quarter ended Year Ended
September June March
Description 2009 2008 2009 2009

Enterprise 30.41 22.70 26.39 89.62
Consumer 4.90 7.26 5.38 27.18
Others 2.97 2.77 2.55 11.48
Revenue 38.28 32.72 34.32 128.27
Cost of Revenues (24.09) (19.23) (21.11) (75.22)
Other Income 0.64 0.31 0.66 1.85

Stock Compensation expenses (0.08) (0.29) (0.16) (1.28)

Depreciation and Amortisation (3.13) (2.53) (3.09) (10.70)

Selling, General and Administrative
Expenses (12.97) (16.35) (12.78) (57.29)

Net Finance Expenses (1.40) (0.42) (1.17) (2.69)

Share of Affiliates 0.39 0.51 0.43 1.33

Profit (Loss) Before tax (2.36) (5.28) (2.92) (15.71)
Income Tax (expense)/benefit - (0.46) 1.83 (2.02)

Profit(Loss) for the year (2.36) (5.74) (1.08) (17.73)

Profit attributable to:

Owners of the parent (2.36) (6.12) (1.52) (18.75)

Non-controlling interests - 0.38 0.44 1.02

Non Financial Indicators
e Port
Subscribers active (in 000's) 306 623 392 490
No of e Ports (Operational) 1,500 1,945 1,651 1,791
E ports Additions(Gross) 29 106 44 367
No of Cities 253 226 253 249

Broadband
Subscribers (in 000's) 137 197 154 165
No of CTOs 1,994 1,998 2,014 2,011
ARPU 303 305 296 305

Technology
No of PoPs 573 524 564 547

Business highlights
Enterprise Services:
Sify's Enterprise services registered a 15% growth in revenues across
services despite the slowdown in the economy. Internet services under
connectivity have grown three-fold over the same time last year.
Sify added about a 100 new customers in managed network services, which
include Enterprise class Internet services, and MPLS VPN services across the
Enterprise and SMB markets. There has been a 50% growth in business from the
SMB segment over the previous quarter. Sify's security business deployed
solutions for customers including ABN Amro Bank, Barclays and Bank Indonesia.
Our complete suite of managed services resulted in customer engagements
for multiple products & services during the quarter. Some of them are, Apollo
DKV, Texmo, Idea India, DTDC and Shriram Group.
The International VoIP business scaled significantly with traffic growing
by 20% over the previous quarter. Sify also launched hubbing services during
the quarter for the SAARC region. Launch of newer services in both National
Long Distance & International Long Distance services are planned in the
coming quarters.
Sify's partnership with IBM for offering FILENET solutions in the Indian
market marks another initiative in Applications Services. This alliance
expands our portfolio of application services for content, document and
business process management.
Sify's focus in building alliances resulted in a significant engagement
for a large MPLS VPN deployment of over 67 locations within India. To
strengthen our alliance strategy, we signed a bilateral agreement with one of
the largest Asian Carriers, which enabled Sify to extend its reach in the
Asian region, while enabling its partner to reach its services to the
remotest corners in India.
Rollout of new services in the domestic market combined with a strong
pipeline of opportunity in connectivity and systems integration will ensure
continued growth in the coming quarters.
International services
Infrastructure Management Services:
Sify expanded engagement with key customers during the quarter, and also
developed a significant sales pipeline that will mature over the coming
quarters. Overall the market demand for our service offerings is healthy and
generating interest from prospects across verticals.
eLearning Services:
Sify's eLearning services acquired three new accounts in the Technology
and Skills Training sectors as also a Global Development Agency during the
quarter. We were also awarded work in leading-edge product & service areas of
Virtual Worlds and Interactive PDF documents.
We launched a Virtual World University platform during the quarter in
collaboration with MERLOT - an international cooperative of Higher Education
Institutions and professional organizations - to increase efficacy of
teaching and learning online
LiveWire - an open source Learning Management System on a Software as a
Service (SaaS) model was launched during the quarter.
Consumer services
Access Media Services
Broadband to home:
The current product portfolio was enhanced with the launch of a new set
of products. These are an extension of our data transfer products with
specific focus on enhancing night time usage. Sify will continue its focus on
expansion with new partners, promotions, new products and customer
upgradation.
ePort cafes:
To add to the range of value added services, Sify tied up with VIA for
flight bookings nation wide. This alliance offers Sify customers more
attractive fares as also more options in terms of airlines.
Sify has tied up with CDAC, the Center for Development of Advanced
Computing, for an assignment related to the Government of Punjab.
The Sify e-Port locator, a service that helps users get a complete list
of Sify e-ports located in that area by sending a text message, was launched
during the quarter.
Interactive services:
Sify.com was judged to be one of the three leading publishers for online
display advertising in India, in a study by The Nielsen Company for the
period June-August 2009.
Sify.com has revamped its homepage (http://www.sify.com), with the new
homepage, being developed based on user feedback and consumer behavior, while
bringing in new brand elements.
Sify Finance (http://www.sify.com/finance) has also introduced live
updates on the stock market along with relevant buy/sell recommendation by
experts.
Sify.com is now available to users on FaceBook
(http://www.facebook.com/sify), while the number of followers on Twitter
(http://twitter.com/sifydotcom) continues to grow steadily. Users can check
the latest Sify.com updates on their FaceBook and Twitter pages now.
Sify Sports (http://sify.com/sports/) brought the best of cricket during
the quarter with live coverage, quizzes, live simulation and interactive
sections on the India- Srilanka- New Zealand Tri-series and Champions trophy
matches.
Other extensive coverage during the quarter included the US Open 2009
(http://sify.com/sports/tennis/us-open/) and Wimbledon 2009 (
http://sify.com/sports/tennis/wimbledon/)
About Sify
Sify is among the largest Managed Enterprise and Consumer Internet
Services companies in India, offering end-to-end solutions with a
comprehensive range of products delivered over a common telecom data network
infrastructure reaching 570+ cities and towns in India.
A significant part of the company's revenue is derived from Corporate
Services, which include corporate connectivity, network and communications
solutions, security, network management services, enterprise applications and
hosting. Sify is recognized as an ISO 9001:2008 certified service provider
for network operations, data center operations and customer support, and for
provisioning of VPNs, Internet bandwidth, VoIP solutions and integrated
security solutions, and ISO / IEC 20000 - 1:2005 certified for Internet Data
Center operations. Sify has licenses to operate NLD (National Long Distance)
and ILD (International Long Distance) services and offers VoIP back haul to
long distance subscriber telephony services. The company is India's first
enterprise managed services provider to launch a Security Operations Center
(SOC) to deliver managed security services. A host of blue chip customers use
Sify's corporate service offerings.
Sify also caters to global markets in the specialized domains of
eLearning Services and Remote Infrastructure Management Services. The
eLearning Services business designs, develops, and delivers state-of-the-art
digital learning solutions catering to for-profit, non-profit organizations,
and governmental organizations in the fields of hi-tech, engineering,
environment, healthcare, education, and finance. The Remote Infrastructure
Management Services provides dependable and economical solutions around
managed services, hosting, and monitoring.
Consumer services include broadband home access and the ePort chain of
cyber cafes across 250 cities and towns. Sify.com, the popular consumer
portal, has channels on news, entertainment, finance, sports, games and
shopping. Samachar.com is the popular portal aimed at non-resident Indians
around the globe. The site's content is available in 8 Indian languages,
which include Hindi, Malayalam, Telugu, Kannada and Tamil, Punjabi and
Gujarati in addition to English.
For more information about Sify, visit http://www.sifycorp.com
Forward Looking Statements
This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. The forward-looking
statements contained herein are subject to risks and uncertainties that could
cause actual results to differ materially from those reflected in the
forward-looking statements. Sify undertakes no duty to update any
forward-looking statements.
For a discussion of the risks associated with Sify's business, please see
the discussion under the caption "Risk Factors" in the company's report on
Form 20-F for the year ended March 31, 2009, which has been filed with the
United States Securities and Exchange Commission and is available by
accessing the database maintained by the SEC at http://www.sec.gov. Contact
information:

Sify Technologies Limited
Mr. David Appasamy
Investor Relations
+91-44-2254-0770 (ext. 2013)
david.appasamy@sifycorp.com

Grayling Investor Relations
Ms. Truc Nguyen (ext. 418) or
Mr. Christopher Chu (ext. 426)
+1-646-284-9400
truc.nguyen@us.grayling.com or
christopher.chu@us.grayling.com

Media Relations:
Ms. Stacy Dimakakos
+1-646-284-9417 sdimakakos@hfgcg.com

SOURCE Sify Technologies Limited

Contact information: Sify Technologies Limited, Mr. David Appasamy, Investor
Relations, +91-44-2254-0770 (ext. 2013), david.appasamy@sifycorp.com; Grayling
Investor Relations, Ms. Truc Nguyen (ext. 418) or Mr. Christopher Chu (ext.
426), +1-646-284-9400, truc.nguyen@us.grayling.com or
christopher.chu@us.grayling.com; Media Relations: Ms. Stacy Dimakakos,
+1-646-284-9417 sdimakakos@hfgcg.com