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Calsoft announces Third Quarter ended 31 Dec 2006 results

Chennai, January 23, 2007 - California Software Company Limited (Calsoft) today announced that its Board of Directors had taken on record and approved the unaudited financial results for the 3rd quarter and 9 months ended December 31, 2006 of financial year 2006-07.

Highlights of results for the 3rd quarter and nine months ended December 31, 2006

  • Total Consolidated revenue for the Nine Months ended Dec 31, 2006 was Rs. 125.24 crores - YOY increase of 57 % (Previous year 9 months ended Dec 31, 2005 - Revenues were Rs 79.98 crores).
  • Total Consolidated Revenue was Rs. 42.84 crores for Quarter 3; Year on Year (YoY) growth of 22% (Total Revenue of previous year Q3 was Rs. 35.08 crores).
  • Profit after tax for the nine months ended Dec 31, 2006 was Rs 1.35 crores (previous year nine month period PAT - Rs 4.23 crores).
  • Profit after tax was Rs. 0.02 crores for Quarter 3 (PAT previous year Q3 was Rs. 3.10 crores).
  • Consolidated Earnings per share was at Rs 1.82 for the nine months ended Dec 31, 2006 and Rs 0.03 for the current Quarter 3 (not annualized). (Previous year 1st nine months EPS was at Rs. 8.59 and previous year Q3 EPS at Rs 6.30). This quarter and nine months the EPS was earned over enhanced equity capital compared to last year.
  • The revenue growth was quite robust for the 9 months compared to previous year at 57%. However margins were lower in current Quarter 3 and also for the 9 months ended December 31, 2006 on account of losses in US Healthcare subsidiary (American Healthnet Inc.), capacity building and development expenses and increase in manpower costs. (Note: Without American Healthnet the consolidated profit of Calsoft Group for Q3 would have been Rs. 5.51 crores with Rs. 6.59 EPS, and the profit for the 9 months ended Dec 31, 2006 would have been Rs. 17.03 crores with Rs.22.99 EPS. Calsoft owns 52 % of American Healthnet Inc. equity through its US subsidiary CSWL Inc.)

Business Highlights-for the 3rd quarter and nine months ended 31 December 2006

  • The company acquired majority equity interest in Inatech Infosolutions, a specialized Oracle solutions provider with a major focus in UK market w.e.f. November 2006.
  • Calsoft was recognized for its revenue growth over the last 3 years with its entry into the Deloitte Technology Fast 50 India 2006 rankings as well as Deloitte Technology Fast 500 Asia Pacific 2006 rankings.
  • A Center of Excellence in Data and Telecom Solutions was launched at Bangalore in a state-of-the-art facility.
  • The sales revenues split up for nine months (consolidated) was as follows:
    • Segment-wise:
      • Enterprise Solutions - 63 %.
      • Technology Solutions - 29 %.
      • Commodity Solutions - 8%.
    • Geography: N. America - 85 % Europe - 6 % Asia - Pacific Region including India - 9%.
  • There were 877 employees in the group as on Dec 31, 2006.

Current Year Prospects and Outlook (2006 - 07)

The company is not in the practice of issuing any guidance. It hopes that the outlook for the balance quarter of 2006-07 will improve with the expected positive impact of measures being taken to improve revenues and profitability, throughout the group. The group plans to grow organically as well as through a prudent and focused acquisition strategy that brings synergies to its customer solution offerings.

For further details,

N Anita
Manager - Corporate Communications
Ph: +91 44 4282 9000
anitan@calsoftgroup.com

   

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