Sify reduces cash loss in Q4

By Our Special Correspondent

CHENNAI, JUNE 4. For the first time in the last eight quarters, the Nasdaq-listed Internet and e-commerce company Satyam Infoway Ltd. (Sify) has reported a lower cash loss (loss before interest, depreciation and amortisation) of $7.3 million for the fourth quarter ended March 31, 2001, down from a cash loss of $8.5 million for the previous quarter ended December 2000.

``It is an important milestone in Sify's march towards profitability,'' declared Mr. R. Ramaraj, Managing Director and Chief Executive Officer of the company. Addressing a press conference here, he attributed the lower cash loss in the last quarter of the just-ended year to three factors-increased revenue and better management of cost as well as bandwith.

Sales revenue for the last quarter of 2000-01 was up to $11.9 million from $10 million in the previous quarter. The revenue for the year as a whole was placed at $ 38.1 million, up from $14.3 million in the previous year.

The loss before interest, depreciation and amortisation stood at $ 23.4 million for the whole year as against a loss of $4.2 million during 1999-2000. Loss before amortisation of goodwill in acquisitions was placed at $29.4 million, up from $5.7 million in the previous year. The net loss stood at $ 53.5 million, up from $ 8.1 million in the previous year.

Corporate services, comprising data/network services and e- consulting continued to be a dominant business for the company, contributing close to 68 per cent of the company's revenue stream. The reminder of the revenue came from retail segment encompassing cybercafes and dial-access, among others.

Mr. Ramaraj presaged bandwith prices to head southwards in times ahead with more players coming into the marketplace. On cost management, he said a greater amount of discipline had been brought into force. Nonetheless, he said the slowdown in the U.S. economy and its consequent impact on the domestic market had not really seen Sify freezing new recruitments. Nevertheless, he admitted that the rate of induction of new employees into the company would definitely not match the one seen in the past.

To a question, he asserted that the company ``has adequate cash'' and added, ``we are talking about achieving break-even this year''. Quizzed if current growth would require Sify to tap fresh funding avenues, Mr. Ramaraj replied in the negative.

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Section  : Business
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