i-flex posts 22% growth in revenues YoY for the quarter ended June 2005

Size: px

Start display at page:

Download "i-flex posts 22% growth in revenues YoY for the quarter ended June 2005"

Jayson Doyle
5 years ago
Views:

For immediate release i-flex posts 22% growth in revenues YoY for the quarter ended June 2005 (As per Consolidated Indian GAAP) Financials at a glance for the quarter ended June 2005 Indian GAAP

1 For immediate release i-flex posts 22% growth in revenues YoY for the quarter ended June 2005 (As per Consolidated Indian GAAP) Financials at a glance for the quarter ended June 2005 Indian GAAP Consolidated Revenues PBT Net Income US GAAP Consolidated Revenues PBT Net Income Rs. 274 Crore Rs. 19 Crore Rs. 15 Crore Rs. 270 Crore Rs. 9 Crore Rs. 6 Crore Highlights of the Quarter Strong new customer acquisitions in both the Products and Services lines of business; acquired 20 new customers for the group. In addition, 10 customers of Equinox and 5 customers for ORTOS join the i-flex family of customers. Accordingly, the total number of customers serviced increases to 579 up from 544 in the last quarter. Product Tank size increases to US$ 60 million on strength of new wins. The deferred revenues at the end of the quarter stand at Rs 121 Crore (up from 112 Crore in the last quarter). Gross addition of 754 employees in the quarter, to meet growing business requirements. Further the staff strength grew due to the addition of Equinox (283) and ORTOS (9) employees. The total staff strength of the group increases to Solutions Portfolio Products Business Added 18 new product customers for the group, with 50% of the additions coming from Europe. Strong Product business momentum continues; Added over US$ 17 million of new License Fees to the tank with several long-term strategic relationships initiated; Page 1 of 5

2 Entered into a strategic agreement to jointly offer comprehensive retail banking solutions to financial institutions in the Nordic region, primarily in Sweden, Finland, Denmark and Iceland with EDB Business Partners ASA. FLEXCUBE registers new strategic wins in Europe Other major announcements in the quarter include: Hollandsche Disconto Voorschotbank B.V., (HDV), a part of AFAB Financiële Diensten Holding B.V. (AFAB), implements Daybreak Lending Suite. BAWAG P.S.K. Group, Austria's third largest banking group has selected FLEXCUBE to replace its core banking solutions in Central and Eastern European (CEE) countries. Reveleus and DayBreak products also register wins in Asia and Europe respectively Services Business Revenues post 54% YoY increase for the quarter. Strong non-citi customer acquisition with addition of three major new relationships in the USA. Non-CITI business registers 48% sequential growth i-flex consulting wins prestigious projects for implementing Basel II framework with two global banks in the USA. Other Highlights Acquired ORTOS, Operational Risk Tool Suite from Capco, a global financial services consultancy and IT solutions provider. Along with Reveleus it will form an integral part of the risk management and compliance suite from i- flex. Also entered into an alliance with Capco to serve as its reseller and distributor through its global sales network and will be i-flex's preferred Operational Risk consultancy partner. Entered into a strategic alliance with Castek Software Inc., a Toronto based provider of insurance systems for the global Property & Casualty (P&C) insurance industry. As part of the alliance, i-flex has established an equity financing arrangement with Castek that allows for i-flex to become the largest shareholder in Castek. Infrastructure: Signed a lease agreement to acquire an additional 2,00,000 sq. ft. area in Goregaon, Mumbai; acquired 10+acres of land in Pune for future expansion Opened a new sales and marketing office in Sydney, Australia. Mumbai, July 29, 2005: The Board of Directors of i-flex solutions limited, a leading provider of IT solutions to the global financial services industry, has approved the results for the quarter ended June 3O, Speaking on the occasion, Rajesh Hukku, Chairman & Managing Director said, We continue to enjoy accelerated penetration into large and strategic accounts, evidenced by the strong new signings of customer relationships in this quarter. Our profits in the quarter are low; however, this is reflective of our product Page 2 of 5

3 business model where the revenue accruals can vary substantially from quarter to quarter. i-flex enjoys a healthy sales pipeline as we continue to meet the growing requirements of the global financial services industry through sustained investments. R. Ravisankar, CEO, International Operations and Business Development added, This quarter saw a significant strategic expansion of our solutions portfolio, specifically in the areas of Risk Management and Insurance, which will open up new avenues of opportunity for future growth. Commenting on the financials Deepak Ghaisas, CEO, India operations & CFO said, Our efforts at managing cost more efficiently are clearly yielding results, while infrastructure and staff strength have grown by 100% and 63% respectively, our overall expenses increased only by 45% for the comparative quarters. Overall this quarter, License Fee composition of 22% as against 35% for the full year has impacted the bottom line and with further impact due to deferral of other revenue items to the extent of Rs. 40Cr under US GAAP. However the costs related to these have not been deferred in conformity with our conservative accounting policy. Financial Performance Financial Results for the quarter ending June 30, 2005 (All the amounts in Rs. crore) Consolidated Indian GAAP: i-flex posted a top line growth of 22% with revenue for the quarter ended June 30, 2005 at Rs. 274 crore as compared to Rs. 224 crore for the corresponding quarter during the previous year. The net income for the quarter stood at Rs. 15 Crore as compared to Rs. 41 Crore in the corresponding quarter in the previous year. Page 3 of 5

4 Consolidated Income statement ltd and its subsidiaries Quarter Ended Consolidated Income Statement Jun-05 Mar-05 Jun-04 Revenues Cost of revenues (excluding depreciation & amortization Gross Profit Selling & Marketing Expenses General & Administrative Expenses Depreciation & amortization Income from operations Reversal /(Provision) for diminution in value of investment Profit/(loss) on sale of investment - (5.0) - Profit/(loss) in joint venture (0.2) (0.1) - Interest Income Other Income /(expense) (2.4) Income before provision for income taxes Provision for income taxes Net Income (before prior period items) The Consolidated Indian GAAP numbers have an additional impact of prior period adjustment on account of write off of premium amortization of forward contracts (net off taxes) amounting to Rs. 3.9 crore. Consolidated US GAAP: i-flex posted a top line growth of 19% with revenue for the quarter ended June 30, 2005 at Rs. 270 crore as compared to Rs. 226 crore for the corresponding quarter during the previous year. The net income for the quarter stood at Rs. 6 Crore as compared to Rs. 42 Crore in the corresponding quarter in the previous year. Consolidated Income Statement ltd and its subsidiaries Consolidated Quarter Ended Income Statement Jun-05 Mar-05 Jun-04 Revenues Cost of revenues (excluding depreciation & amortization Gross Profit Selling & Marketing Expenses General & Administrative Expenses Depreciation & amortization Income from operations Loss on Equity investments (0.3) (5.1) (0.02) Interest Income and Other income/expense Income before provision for income taxes Provision for income taxes Net Income Page 4 of 5

5 About i-flex solutions (Reuters: IFLX.BO & IFLX.NS) is a world leader in providing IT solutions to the financial services industry. i-flex has serviced over 570 customers in more than 115 countries. i-flex s range of products and customized services enable financial institutions to cut costs, respond rapidly to market needs, enhance customer service levels and mitigate risk. i-flex and FLEXCUBE are registered trademarks of. Reveleus, Daybreak and PrimeSourcing are trademarks of and are registered in several countries. All company and product names are trademarks of the respective companies with which they are associated. For information, please visit: For more information on the press release, please contact: INDIA Eapen Thomas Tel: , ext Fax: eapen.thomas@iflexsolutions.com APAC Parvez Ahmad Tel: , ext. 212 Fax: parvez.ahmad@iflexsolutions.com EUROPE Sunil Robert Tel: Mobile: Sunil.robert@iflexsolutions.com INDIA Ramya B S Tel: Fax: / bs.ramya@iflexsolutions.com NORTH AMERICA & LATIN AMERICA Penney Richardson / Hugo Gordillo Tel: / penney.richardson@iflexsolutions.com Adfactors PR Pvt. Ltd. Zarina Hodiwalla Mumbai Phone: Mobile: zarina@adfactorspr.com Page 5 of 5

i-flex posts 51% growth in revenues YoY for the quarter ended June 2006 (As per Consolidated US GAAP)

For immediate release i-flex posts 51% growth in revenues YoY for the quarter ended June 2006 (As per Consolidated US GAAP) Financials at a glance for the quarter ended June 2006 US GAAP Consolidated Revenues