| Results
for quarter ending 30th June, 2007
Bengaluru, India - 31 July 2007: Cambridge
Technology Enterprises Ltd. (CTE), a thought leader, innovator, and a
leading provider of comprehensive SOA – based solutions to mid sized
enterprises in the US markets, today announced its Q1 results for the
fiscal 2007-2008.
Highlights
Consolidated Results for April to June (Q1-08)
quarter ending 30th June, 2007:
- Total Revenue on consolidated basis for CTE was Rs.1031.06 lakhs
compared to Rs.577.94 lakhs of revenue for the Quarter ended 30th
June 2006, which translates to over 78% growth over previous year
Q1. With respect to the revenue of Rs 595.84 Lakhs for Q4-2007 (Jan-Mar
2007 quarter) the sequential growth in revenue on QoQ was 73%.
- Profit Before Tax was Rs.201 lakhs, compared to Rs. 139 lakhs of
Profit Before Tax for the Quarter ended 30th June 2006 which translates
to over 44% growth in profit. With respect to the PBT of Rs 79 Lakhs
for Q4-2007 (Jan-Mar 2007 quarter) the sequential growth in Profit
QoQ was over 154%.
- EPS for the period is Rs.1.11 on a paid up capital of Rs 1582 lakhs
compared to Rs 1.43 for Quarter ended 30th June 2006 on a paid up
capital of Rs 950 lakhs; the sequential growth in EPS on QoQ basis
was 18% up from Rs 0.9 per share for Q4-2007 (Jan-Mar 2007 quarter).
- In this quarter, the company added 10 new customers to its customer
base and offered its SOA related transformation services to 3 clients.
During this quarter, CTE completed acquisition of ComCreation
Inc. This strategic acquisition has added a Hi-tech Vertical to the company’s
portfolio of services and enhanced its delivery capacity.
Cambridge Technology Enterprises Ltd (CTE) –
Standalone.
Cambridge Technology Enterprises Ltd (CTE) derives its
revenues primarily from its billings to its WOS (Wholly owned subsidiary)
in US, CTE Inc which has all the customer contracts, the billing is done
based on the Service agreement between the two entities based on the transfer
pricing rules. Total Revenue for the quarter ended June, 30, 2007 was
Rs. 450.06 lakhs with PBT of Rs 113.44 Lakhs and PAT of Rs 99.98 Lakhs
on account of the tax provisions made in line with the Minimum Alternate
Tax (MAT) applicable to the current fiscal.
Mr. Bhaskar Panigrahi, CEO, Cambridge Technology Enterprises
Ltd (CTE) said, “The robust numbers reaffirm increasing acceptance
of our SOA solutions and services in midsize market segment. The positive
growth with sustained profitability has been possible due to a balanced
combination of organic growth and synergistic acquisition strategy. We
are pleased with the synergy realization and integration benefits from
ComCreation acquisition and this combination shows a lot of promise in
future. We have also entered into a definitive agreement to acquire Reilly
Associates Inc., which will add to our growth in next quarters.”
Ramesh Reddy, Chief Financial Officer, commenting on the results said
“The deployment of funds from IPO have started showing results in
terms of growth of revenues and profits in absolute terms, while the appreciating
rupee against dollar is aiding us in our inorganic investments in acquisitions,
it also impacted our profitability percentage margins.”
Senior Management Changes
Three major changes have been incorporated.
1. Mr. D R R Swaroop, Whole time Director of CTE has
assumed the position of Head- Corporate Governance.
2. Mr. Thomas John, CEO of ComCreation has assumed the
role of heading the Hi-tech Practice of CTE as Vice President, Hi Tech
Practice.
3. Mr. Nagesh Rao, Duvvuri, Whole time Director &
Co-Founder of ComCreation while continuing to head the India operations
of ComCreation will also head the Corporate Development activities of
CTE as Vice President.
Others
10 new clients were added in the quarter and the head
count of the complete group stands at 265 compared to the number of 134
as at 31st Mar 2007 a growth of 98%.
About Cambridge Technology Enterprises Ltd.
(CTE)
Cambridge Technology Enterprises Ltd. (CTE) is a thought
leader, innovator, and a leading provider of comprehensive SOA-based solutions
and Enterprise Transformation applications. A SEI CMMI Level 5 company,
CTE, with its Center of Innovation located at Cambridge, Massachusetts,
US, provides revolutionary solutions on budget and on time. It operates
under various verticals like Banking and insurance, Life Sciences and
Health care, High Tech, energy & utility, wireless and mobile to name
a few.
CTE entered the capital market in the month of December’2006,
got listed in the month of Feb’2007 and raised funds of the order
of Rs.2400 lakhs through a Fixed Price issue. CTE’s shares are listed
in India on the Stock Exchange – Mumbai, and the National Stock
Exchange.
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