Sify Reports Revenues of US$ 38.63 Million for First Quarter of Fiscal Year 2010-2011

CHENNAI, India , July 30, 2010 /PRNewswire-FirstCall/ -- Sify TechnologiesLimited (NASDAQ Global Markets: SIFY), a leader in Enterprise and ConsumerInternet Services in India with global delivery capabilities, today announcedits consolidated unaudited results under International Financial ReportingStandards (IFRS) for the first quarter of fiscal year 2010-11.

Mr. Raju Vegesna, Board Chairman and CEO & MD, Sify Technologies Ltd,said, "For many quarters we have been focussing on returning the Company togrowth and profitability and this is showing some satisfactory results. Ouralliances with leading industry players, be it in Cloud Services or bandwidthsupplies for Domestic and International bandwidth, or for roll-out of ourother services have enabled a strategic shift in the way we do business. Wehave satisfaction in seeing the roll-out of Cloud Services both in Enterpriseand Consumer segments and that these are being well-received by ourcustomers. By launchingIndia's first Consumer Cloud services targetedpresently at cybercafes, Sify has started implementation of its unifiedstrategy for the Internet Access and Portals space.

Mr. MP Vijay Kumar, Chief Financial Officer, Sify Technologies Limitedsaid, "The consolidation process that was started in the earlier quarters isexpected to show some results. The SG&A expenses have reduced by about 10percentage points over the same period last year and cost of revenues havealso dipped marginally. Better cost management has resulted in higher EBIDTAat US$ 1.26 million against EBIDTA loss of US$ 0.20 million during sameperiod last year. Our most significant challenge now remains the consumerbusiness. Losses in our consumer business have been growing over the recentquarters and a revised consumer strategy is being rolled out.

The same quarter previous year

This business has grown 14% over the same quarter previous year. Duringthe quarter Sify launched its On-demand Compute services commercially. Sifyhas successfully won many contracts for the Cloud Computing services whichare available on Windows, Linux and Solaris Platforms. Another tie up willsee us using HP blade servers along with VMware tools for virtualization.

Sify has forged strong alliances with HP, Microsoft and other SI partnerslike Wipro, HCL Technologies etc. The combined strength will be put to use onlarge bids while also vying for the connectivity and hosting business fortheir customers.

Business Volume (in minutes) of International long distance (ILD)business (India Termination) has grown by a little over 14% this quarter overthe previous quarter and the revenue grew by around 10%.

Apart from theIndia termination, the focus has been in setting up thehubbing business with a near 100% increase of revenue over the previousquarter. New hubbing routes to many South East Asian countries were createdduring the quarter.

Messaging services grew by approximately 14% during the quarter over thesame quarter last year. Online examination services (iTest) grew in thisquarter by 286% over the same quarter last year. This business is gainingmomentum with both the Private Sector as well as the Govt. sectors demandingmore of these services.

The elearning business grew 8% over previous quarters

While the elearning business grew 8% over previous quarters, theinfrastructure business jumped 23% due to a one time service fees. In bothbusinesses, Sify has entered into partnerships to create additionalopportunities for the future.

Sify is among the largest Managed Enterprise and Consumer InternetServices companies inIndia, offering end-to-end solutions with acomprehensive range of products delivered over a common telecom data networkinfrastructure reaching more than 600 cities and towns inIndia.

A significant part of the company's revenue is derived from CorporateServices, which include corporate connectivity, network and communicationssolutions, security, network management services, enterprise applications andhosting. Sify is a recognized ISO 9001:2008 certified service provider fornetwork operations, data center operations and customer support, and forprovisioning of VPNs, Internet bandwidth, VoIP solutions and integratedsecurity solutions, and ISO / IEC 20000 - 1:2005 certified for Internet DataCenter operations. Sify has licenses to operate NLD (National Long Distance)and ILD (International Long Distance) services and offers VoIP back haul tolong distance subscriber telephony services. The company isIndia's firstenterprise managed services provider to launch a Security Operations Center(SOC) to deliver managed security services. A host of blue chip customers useSify's corporate service offerings.

Consumer services include broadband home access and the ePort cyber cafechain across more than 200 cities and towns inIndia. Sify.com, the popularconsumer portal, has channels on news, entertainment, finance, sports, gamesand shopping. Samachar.com is the popular portal aimed at non-residentIndians around the globe. The site's content is available in 8 Indianlanguages, which include Hindi, Malayalam, Telugu, Kannada and Tamil, Punjabiand Gujarati in addition to English.