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Updated: Rediff Q3FY12: New Paid Mail & Website Product For SMEs; Loss At $1.20M

Updated with information from Rediff's investor conference call. Rediff.com reported a loss of $1.20 million for the quarter ending 31st December 2011 (Q3-FY12), a decrease compared to Q3-FY11′s loss of $1.80 million. At the closing of the quarter, the company’s cash balance stood at $25 million, and it intends to continue to spend $2-$2.5 million per quarter for the next few quarters for investments in product development, sales diversification and the entrance into new markets. The company’s revenue decreased about 18% from $5.90 million in Q3-FY11 to $4.81 million in the present quarter. Compared to the same quarter last year, Rediff’s revenues from India Online decreased 7% closing at $3.89 million while its U.S. Publishing business decline marginally at $0.92 million. Financial Highlights - According to Ajit Balakrishnan, CEO of the company, revenues were adversely affected due to slow growth in advertising in the quarter, specially on account of sectors such as financial services, insurance, and telecom curbing their ad spends. However, some part of the loss was substituted by sectors such as FMCG and e-commerce. He also mentioned that a significant portion of the cost resulting in negative EBITDA was attributed to investments for supporting online services like paid mail, daily deals and local tv, in terms of man power, infrastructure and marketing costs. The company expects these businesses to contribute to revenue in topline as well as bottomline in the next 2-3 quarters. - During the quarter the company recorded a one time gain of $0.75 million since it exited from one of its…

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