No comments from Nasdaq listed Indian Internet and IT company Sify Technologies on the long pending settlement with Yahoo: company officials, responding to a question on their earnings conference call, said that the matter is still under consideration, and declined comment. Sify had filed a suit (case no: 1-06-CV-076671) against Yahoo in the Superior Court of California, County of Santa Clara on 18th of December 2006.
Sify also declined to comment on whether the company is likely to break even by the end of the year.
Sify has reported revenues of $34.54 million, up 8.7 percent quarter on quarter, and 10 percent year on year, largely on an improvement in the performance of its enterprise business. On the consumer business front, the company reported revenues 30.82 percent lower year on year. The company reported a significantly lower loss of $1.34 million, as compared to $5.36 million reported last quarter, and $2.77 million reported in Q1-09. The company expects portal revenues to grow, and suggest that video ads have been a success. Cybercafe revenues have stabilized
Following an order from the High Court of Madras on July 1, 2009, approving the merger Sify has merged its subsidiary Sify Communications into the company, and says that the loss includes a “one-time beneficial tax adjustment of $ 1.88 million” on that account.
CMD Raju Vegesna has said in a statement that there are signs on improvement in the online advertising front “and this should reflect in our performance going forwards. Our initiatives to consolidate and rationalize access services through cyber cafes are bearing fruit. However, consumer broadband services remain a challenge being addressed with a focused approach to growing revenues and users. Overall we expect to continue growth and reduction in losses moving towards profitability going forwards.”
Sify said that their portal Samachar.com, which they say is still a favourite among NRIs, is now available on Mobile – Blackberry, iPhone, Palm, and Nokia phones.
Sify said in case of the broadband business, they will focus on reducing costs and rationalising products to move towards a profitable operation. New customer acquisition has slowed down, resulting in lower revenues and subscribers. Compounding the problem is a high rate of churn, but Sify claims that is an industry problem. The company says they will focus on customer acquisitions and churn reduction in churn rate, and follow up on renewals.
E-Port has arrested decline in revenues, and rationalized products. Revenues have grown, and realization per hour increased. Focus has been on value added services with partners such as Microsoft increased. Online ticket bookings with Indian railways increased.
During the quarter, Sify Videos partnered with Eros, iStream and ANI, and also provided coverage of the Indian Premier League and T-20 World Cup, with Fantasy Cricket and Live Simulation. Sify News provided live updates on the Indian elections…but then there’s hardly a major Indian news site that didn’t provide Election updates or do something around the Indian Premier League or the T20 World Cup.