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SATYAM INFOWAY LIMITED RELEASES CONSOLIDATED US GAAP OPERATING RESULTS FOR THE
FISCAL QUARTER ENDED SEPT. 30,
2000
CONTINUES ROBUST GROWTH AND CONSOLIDATION OF MARKET LEADERSHIP
CHENNAI, India--(BUSINESS WIRE)--Oct. 10, 2000-- Satyam Infoway Limited (Nasdaq
National Market:SIFY - news), India's premier Internet and eCommerce company,
released today its unaudited consolidated US GAAP results for the fiscal quarter
ended Sept. 30, 2000. These consolidated financial statements include the
results of SIFY and its subsidiaries, including IndiaWorld Communications Ltd.
COMPANY PERFORMANCE
During the quarter ended Sept. 30, 2000 SIFY recorded significant growth in all
three of its businesses, consisting of Internet access, portal content and
corporate services.
The financial highlights are as follows:
- Revenue grew to Rs 435.16 million ($9.4 million) for the second
quarter. This is over three times the revenue of the corresponding
quarter of the previous year and 35% higher than the June quarter.
- Loss before interest expense, income taxes, depreciation and
amortization for the Sept. 30 quarter was Rs 232.8 million ($5.1
million)
- During the quarter ended Sept. 30, 2000 SIFY recorded the
following charges to the Profit and Loss Account:
- Depreciation expense of Rs 94.0 million ($2 million)
- Amortization of goodwill of Rs 328.63 million ($7.1 million),
largely consisting of the goodwill recorded in the IndiaWorld
transaction, which is being amortized over five years.
- Deferred compensation expense of Rs 28.41 million ($0.6 million)
related to the amortization of stock-based compensation.
- Net loss for the quarter was Rs 614.9 million ($13.3 million)
after considering the above charges
OPERATING RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2000
(IN MILLIONS)
<TABLE>
<CAPTION>
Three months ended Six months ended Year ended
September 30, September 30, March 31,
1999 2000 2000 1999 2000 2000 2000
Rs Rs US$ Rs Rs US$ Rs
------ ------ ---- ------ ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues: 127.42 435.16 9.45 208.23 756.84 16.43 671.02
</TABLE>
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<TABLE>
<CAPTION>
Three months ended Six months ended Year ended
September 30, September 30, March 31,
1999 2000 2000 1999 2000 2000 2000
Rs Rs US$ Rs Rs US$ Rs
------ ------ ---- ------ ------ ----- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Other income 0.50 68.17 1.48 0.50 125.72 2.73 8.56
Total income 127.92 503.33 10.93 208.73 882.56 19.16 679.58
Cost of Revenues 68.21 273.49 5.94 107.11 470.29 10.21 293.73
Selling, general
and administrative
expenses 98.28 450.34 9.78 161.12 754.95 16.39 582.64
Equity in losses
of affiliates -- 12.30 0.27 -- 17.72 0.38 --
EBITDA (38.57) (232.80) (5.06) (59.50) (360.40) (7.82) (196.79)
Depreciation 26.79 94.05 2.04 48.09 159.38 3.46 125.89
Amortisation of
goodwill -- 328.63 7.13 -- 415.62 9.02 115.99
Amortisation of
deferred stock
compensation
expense 0.28 28.41 0.62 0.48 47.28 1.03 20.63
Taxes -- -- -- -- (0.33) (0.01) (1.48)
Minority interest -- -- -- -- (0.38) (0.01) (1.80)
Interest
(expense)/income,
net (11.27) 69.00 1.50 (20.59) 188.73 4.09 74.12
Net Loss (76.91) (614.89) (13.35) (128.66) (793.24) (17.22) (381.90)
</TABLE>
BUSINESS PERFORMANCE:
Access: The company's Internet access business had robust subscriber growth with
more than 320,000 subscribers in September 30, 2000 as compared to more than
87,000 subscribers in September 30, 1999, for a growth of 268% net. This also
represents a 60% growth over the more than 200,000 subscribers in June 30, 2000.
Recent initiatives to stimulate the market, such as the launch of the unlimited
Internet access product (branded as 'UnLtd'), have had very good results in
terms of growth in subscribers. This has necessarily resulted in lower revenues
per user, offset to some extent by lower cost of bandwidth.
ONLINE PORTAL:
- Re-launch of the consumer portal as www.sify.com and its emergence
as one of India's leading portal networks with 105 million page
views during the month of September
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2000, as against 12 million page views in September 1999, and 80
million page views in June 2000. The page views for the June and
September 2000 quarters include properties acquired with
IndiaWorld Communications
- The successful re-launch and increase in page views was achieved
with a greatly enhanced portal with a well researched user
interface for better navigation, new channels and services,
enhancements to existing channels and a contemporary new design.
- SIFY to acquire US based leading India-interest online shopping
mall www.Indiaplaza.com in an all-stock deal involving 480,000
ADSs.
- Acquisition of www.kheladi.com for $1.3 million, 5% to be paid in
cash and 95% through the issuance of equity shares.
- Re-launch of www.Khel.com as the complete sports site for Indians
covering cue sports, tennis, golf, chess, hockey and football
besides cricket.
- Tie up with Landmark, one of India's leading bookstores, to offer
over 200,000 books under 2,500 categories for the online bookstore
at www.sify.com.
CORPORATE SERVICES:
- The corporate services business continued strong growth with
growing revenue streams. E-business products and services include
sectors such as banking, securities brokerage, manufacturing,
retail, media and telecom. Today the Company's corporate services
business is moving up the value chain with assignments in
e-Strategy and consulting.
- Launch of state-of-the-art Hosting Center in Mumbai, the first of
its kind in India spread over 20,000 square feet with
international standards of design and specifications.
- Launch of NetBuilder, a powerful tool for creating transaction
oriented market place or portal for eMarkets.
- Launch of www.AutoWebex.com, a portal for the Automotive Industry
that aims to serve as a 'Business Efficiency Enabler' providing
global reach.
- Signing of MOU with US Business Network (owner and operator of
www.meetchina.com) for setting up a virtual market place that will
concentrate on cross border trade between Indian companies and
those of developed economies.
- Acquisition of majority stake in eChem.com Limited, a B2B portal
focused on facilitating transactions for the Chemicals Industry.
- Acquisition of www.Formsindia.com, India's leading portal with a
comprehensive database of forms for free downloading and printing
by the general public and corporates.
NEW BUSINESS INITIATIVES:
- Formation of 100% subsidiary for Education services -- Satyam
Education Services Limited to provide online learning in India.
- Formation of 100% subsidiary for B2B services -- Satyam
Webexchange Ltd., to establish a platform for vertical B2B portals
by Industry segment.
- Formation of 100% subsidiary for IT enabled and related services
-- Satyam Serwiz.com Ltd. for processing and delivery of IT
enabled and related services to global customers.
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- Formation of 100% subsidiary for security related services --
Safescrypt Ltd. for providing security products from Verisign, the
world leader in digital authentication and certification, to
enable corporates, websites and individuals to conduct secure
e-commerce on the Net.
- SESL's acquisition of majority stake in Eduempire.com (P) Ltd.
which is in the business of integrating educational communities
like colleges and institutes, parents, teachers and students on a
single platform and providing the benefits of the Internet to
them.
This Press Release contains forward-looking statements within the meaning of
section 27-A of Securities Act of 1933, as amended, and Section 21 E of the
Securities Exchange Act of 1934, as amended. The forward looking statements
contained in the press release include, but are not limited to, comments
regarding the prospect for further growth in the Company's business or its
ability to capitalize on the new initiatives described herein. The forward
looking statements contained herein are subject to certain risks and
uncertainties that could cause actual results to differ materially from those
reflected in the forward looking statements -- Satyam Infoway undertakes no duty
to update any forward-looking statements. For a discussion of the risks
associated with Satyam Infoway's business, please see the discussion under the
caption "Risks related to Business" in Satyam Infoway's Report on Form 6-K for
the Quarter ended June 30, 2000 which has been filed with the Securities and
Exchange Commission and the other Reports it files with the SEC from time to
time. These filings are available at www.sec.gov.
Contact:
Satyam Infoway Ltd. (in India)
R. Ramaraj, + 91-44-4353221 (CEO and Managing Director)
George Zacharias, + 91-44-4353221 (President & COO)
T.R. Santhanakrishnan, + 91-44-4353221 (CFO)
www.sifycorp.com
or
The Anne McBride Company (in US)
Can Onen, 212/983-1702
[email protected]
