Hyderabad, India, March 7, 2007 : Cambridge Technology Enterprises Ltd. (BSE: 532801 & NSE: CTE), a system integrator which focuses on building and integrating business applications for broad transformation needs of global enterprises across various industry verticals, today announced the unaudited results of the company for the quarters ended September 30, 2006 (Q2 2007) and December 31, 2006 (Q3 2007).

Consolidated
Revenue from software services stood at Rs. 1751 Lakhs for the 9 months ended 31 Dec 2006 compared to 1840 Lakhs for 15 months period ended 31st March 2006 an increase of about 59% on an annualized basis. The profit before tax stood at 24% up from 20.7% compared to 15 month period ended 31-Mar-2006.

The revenue from Organic Business for the current financial year is buoyant and is expected to grow at an annual rate of around 60% compared to the annualized 15 month period ended 31-Mar-2006.

Operating margins improved from 24.1% to 24.3% and 24.9% in sequential quarter Q1-07, Q2-07 and Q3-07 on the back of improved operational efficiencies.

Profit after Tax, of Rs 408.6 Lakhs for 9 months ended 31-Dec-2006 indicates a growth of 77% on an annualized basis compared to the previous 15 month period’s profit of Rs 384 Lakhs.

EPS for the quarters Q2 & Q3 07 were at Rs. 1.44 & 1.47 respectively on a consolidated basis.
Commenting on the results, Bhaskar Panigrahi Chairman & CEO, Cambridge Technology Enterprises Limited, said “The company is focused on growing rapidly in line with the industry segment growth and last 9 months growth in revenues and profitability have been higher than that for the previous periods. A significant positive development in Q3 performance is the expansion in EBITDA margins by over 1% (100) basis points on account of enhanced efficiencies and reduction of delivery cost. Consequently, EPS at Rs. 1.47 was higher than the figure of 1.44 for Q2.”

“The focus now is to implement the company’s four pronged expansion strategy that couples inorganic growth, investment in building IP for attaining and maintaining a leading position in the SOA market and expanding global delivery infrastructure for which the company successfully raised Rs 2400 Lakhs. All the existing engagements due for renewal were extended during the period and we added three new customers in Q2 & Q3 and we also increased investment into our SOA competency center” Bhaskar Panigrahi added further.

Ramesh Reddy, Chief Financial Officer, Cambridge Technology Enterprises Limited said, “The highlight of last quarter Q3 is 100 basis points improvement in EBITDA margins under consolidated Indian GAAP despite a negative impact on the margins because of 3.7% rupee appreciation. EPS at Rs. 1.47, was higher than the earlier quarter’s Rs 1.44 in spite of foreign exchange loss.”

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