Sasken Q2 FY07 Revenues at Rs 118 crore - up 29% QoQ; Increases by 36% YoY; Net Profit up by 37% QoQ and 2% YoY

Sasken Q2 FY07 Revenues at Rs 118 crore - up 29% QoQ; Increases by 36% YoY; Net Profit up by 37% QoQ and 2% YoY

Bangalore, October 30, 2006: Sasken Communication Technologies Limited (BSE:532663, NSE:SASKEN), a pioneer in telecom R&D outsourcing, today announced its consolidated results according to Indian GAAP for the second quarter and half-year ended September 30, 2006.

Consolidated revenues for Q2: Rs 117.55 crore - up 29% vs Q1 FY07
Consolidated Profit After Tax for Q2: Rs 11.88 crore - up 37% vs Q1 FY07
Consolidated EPS for Q2: Rs 4.24/-
Consolidated revenues for H1: Rs 208.67 crore - increases 35% vs H1 FY06
Consolidated Profit After Tax for H1: Rs 20.54 crore - increases 25% vs H1 FY06
Consolidated EPS for H1: Rs 7.34/-

Key Financial Highlights for Q2 FY07

• Acquisition of Botnia Hightech Oy in Finland completed on August 31, 2006; accounts consolidated from September 1, 2006
• Botnia Hightech Oy had revenues of Rs 10.2 crore for the month of September 2006
• Average collection period stands at 79 days
• Revenue contribution from the Top five customers stood at 77.3% and from Top 10 customers at 86.6%
• Cash and cash equivalents stand at Rs. 41.2 crore as on September 30, 2006, compared to Rs. 20.7 crore as on June 30, 2006
• The consolidated Forex-hedged position, as on September 30, 2006 was USD 43.9 Million

Key Business Highlights for Q2 FY07

• A net total of 476 people were added this quarter (Gross Adds of 675), taking the total employee strength to 3,373 as on September 30, 2006
• Utilization on the services side stands at 74%
• EBITDA Margins on the services side were at 24%
• Two new Design-Ins on the products side
• 11 new customers added during the quarter; a total of 53 active customers
• Mr Srikanth Kannankote joined the company as President and Chief Operating Officer on September 1, 2006

Commenting on the performance, Rajiv Mody, Chairman & CEO, Sasken said, "Fuelled by good demand traction, we have sustained our growth momentum in the second quarter. Our services business delivered 27% sequential growth, including Botnia, and 16% QoQ growth on an organic basis. Services revenues crossed Rs 100 crore in a quarter for the first time. The acquisition of Botnia is a key milestone for us, and the integration efforts are proceeding satisfactorily. Further, our Mexico center is ramping up steadily and turned profitable in Q2. Our new Test Lab offering has also started generating revenues for us,"

"We have been taking various measures to move into the next orbit of growth; one such key development was Srikanth Kannankote coming on board as President and COO," said Rajiv.

"The products business continues to work towards achieving the key milestones set out for the second half of the financial year. Two design-ins have been achieved in Q2," he added.

In continued recognition of its status as a Best Employer, Sasken was ranked among the Top 20 in the Dataquest Top 20 Best Employers’ Survey.

Source : Equity Bulls

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