Losses mounted for Northgate Technologies in the January to March 2009 quarter as the company reported a consolidated net losses of Rs 3527.1 million over revenues of Rs 490.87 million during the quarter. Revenues have fallen by 66.9% from Q3 09 and 69.8% from the corresponding quarter last fiscal (Q4 08). Northgate runs ad network Axill, VoIP and IPTV company Globe7, and owns the social networking site Bharatstudent.com via its subsidiary Social Media India.
Earnings per share are also in the red at Rs -121. Last quarter, the company posted net profits of Rs 124.35 million and EPS was at Rs 3.55.
Details: Release | Financials
Buys Promotoers Stake In Bharatstudent for Rs. 10 Million
The company owns social networking site Bharatstudent.com but its financial report for the quarter notes that its only active in the online advertising business and that Social Media India, which runs Bharatstudent.com is now a wholly owned subsidiary. A 4% minority interest in Social Media India was acquired for Rs 10 million during the fiscal from promoters.
Cost Cutting, Writing Off Investments
Selling and marketing expenses for the company dropped from the previous quarter to Rs 266.4 million.
In March 2009, Northgate closed its Hong Kong based Server Farm and sales and marketing offices. Sales and marketing offices in Singapore and Beijing were also closed, leading to fixed assets of Rs. 13,75.36 million, debt amounting to Rs.475.12 Million and gaming engines deployed on gaming portal Egglad.com having net book value of Rs. 226.43 million having been written off.
Standalone results were similarly gloomy, with revenues of Rs 26.24 million against losses of Rs. 2.6 billion, which have spiraled from profits of Rs 21.25 million last quarter and Rs 50.53 million in the corresponding quarter last year. Earnings per share on a standalone basis stood at Rs -74.6, down from Rs 1.3 in the corresponding quarter last fiscal.
— Northgate Reports Q2 Profit Of Rs. 22.4 Crores; Bharatstudent FY08 Loss At Rs. 3.96 Crores
— Northgate Shuts Down Beijing, San Francisco Offices Of VoIP & IPTV Subsidiary
— Northgate Shuts Down Singapore Branch; Q3 Net Profit Dips By 44%