Cambridge Technology Enterprises Limited (CTE) forays into ERP segment; wins new customer

Results for quarter ending 30th September, 2007

Hyderabad, India - 31 October 2007:— Cambridge Technology Enterprises Ltd. (CTE), a thought leader, innovator, and a leading provider of comprehensive SOA – based solutions to mid sized enterprises in the US markets, today announced its Q2 results for the fiscal 2007-2008.

Highlights

Consolidated Results for July to September (Q2-08) quarter ending 30th September, 2007:

Total Revenue on consolidated basis for CTE was Rs1329.22 lakhs compared to Rs 595.02 lakhs of revenue for the Quarter ended 30th September 2006, which translates to 123% growth over previous year Q2. With respect to the revenue of Rs.1008.44 lakhs for Q1-FY2007-08 (Apr-Jun 2007 quarter) the sequential growth in revenue on QoQ was 32%.

Profit Before Tax was Rs 248.40 lakhs, compared to Rs. 147.43 lakhs of Profit Before Tax for the Quarter ended 30th September 2006 which translates to 69% growth in profit. With respect to the PBT of Rs.201.12 lakhs for Q1FY2007-08 (Apr-Jun 2007 quarter) the sequential growth in Profit QoQ was over 23.63%.

EPS for the period is Rs.1.34 on a paid up capital of Rs 1582 lakhs compared to Rs 1.44 for Quarter ended 30th September 2006 on a paid up capital of Rs 950 lakhs.

In this quarter, the company added 7 new customers to its customer base.

Cambridge Technology Enterprises Ltd (CTE) derives its revenues primarily from its billings to its WOS (Wholly owned subsidiary) in US, CTE Inc which has all the customer contracts, the billing is done based on the Service agreement between the two entities based on the transfer pricing rules. Total Revenue for the quarter ended September, 30, 2007 was 481.36 Lakhs compared to Rs 415.03 Lakhs for the previous year quarter ended September 30, 2006. The PBT for the quarter ended September 30, 2007 is Rs 106.73 compared to Rs 129.76 Lakhs for the previous year September 30, 2006. Sequentially, the previous quarter ended June 30, 2007 revenue was Rs. 450.06 lakhs and PBT of Rs 113.44 Lakhs.

Mr. Bhaskar Panigrahi, CEO, Cambridge Technology Enterprises Ltd (CTE) said," The key accomplishment for this quarter was the completion of the formalities to acquire Reilly & Associates, Inc., as announced. The acquisition has enhanced CTE’s service coverage capability to include Oracle ERP implementation and support and it gives us access to over 60 mid-sized customers who can be targeted for migration onto the SOA platform. The synergy that has evolved from the combined offerings of CTE and Reilly has helped the company convert a one-time project order into a multi-year, multi-million-dollar recurring revenue order. We have had another good growth quarter and we're expecting to continue the growth trajectory into the future as well.”

Ramesh Reddy, Chief Financial Officer, commenting on the results said “The trend that started from the beginning of this fiscal continued this quarter. We are also focusing on further improvement in enhancing the revenues by leveraging the added service capabilities, sales & marketing efforts and existing customer base and also integrating global delivery and support systems to help sustain margins in the rapid growth phase.”

Cambridge Technology Enterprises Ltd. (CTE) is a thought leader, innovator, and a leading provider of comprehensive SOA-based solutions and Enterprise Transformation applications. A SEI CMMI Level 5 company, CTE, with its Center of Innovation located at Cambridge, Massachusetts, US, provides revolutionary solutions on budget and on time. It operates under various verticals like Banking and Insurance, Life Sciences, Health Care, High Tech, Energy & Utility, Process Manufacturing, Wireless and Mobile to name a few.

CTE entered the capital market in the month of December 2006, got listed in the month of February 2007 and raised funds of the order of Rs.2400 lakhs through a Fixed Price issue. CTE’s shares are listed in India on the Stock Exchange – Mumbai, and the National Stock Exchange.