Cambridge Technology Enterprises Limited (CTE) posts 286 % growth in revenue and 206 % growth in profit Y-on-Y

Breaks the small-cap barrier to enter mid-cap segment

Hyderabad, Wednesday, July 01, 2008: Cambridge Technology Enterprises Limited (CTE), a global IT services provider a leading provider of SOA based solutions and Enterprise Transformation applications to mid size enterprises and mid size business units of Global 2000 enterprises, today announced its audited results for the fiscal year 2007-2008, 12 months period ending 31st March, 2008.

CTE revenues surged from Rs 23.40 Crores (USD 5.85 Million) in FY 2007, to Rs 90.27 Crores (USD 22.58 Million) (TTM) revenue in a span of one year. The Q4 FY 08 revenue was Rs 44.59 Crores (USD 11.16 Million) which has taken the company to an annualized run rate of over Rs 178 Crores (USD 44.53 Million), enabling it to break the small cap barrier to enter the mid-cap segment successfully. The revenue growth recorded is 286% and profit growth is 206% over previous fiscal.

Cambridge Technology Enterprises Limited (CTE) witnessed this phenomenal growth while maintaining good margins by meticulously implementing the four-pronged strategy it had outlined in the beginning of the last fiscal year. CTE went public with a commitment to invest in emerging technology areas like SOA, Innovation and competency centers, integration and expansion of acquired companies to leverage the synergies, and selective M&A’s to enhance core competencies and customer portfolio. These strategies has not only enabled CTE to attain the critical mass but also helped in mitigating the risks that are encountered by companies during current global uncertainties.

CTE is focused to become a single-stop IT provider to the mid-market customers. It started the year with customers in the US market and forayed into the India market by the end of the year. The initial responses of the India customers to the augmented CTE services have been very encouraging. Many exciting opportunities have been identified in the commercial and Defence sector in India which will be pursued in FY 2009. Further, CTE plans to expand its operation in the APAC region.

The operations of the company have now reached higher level of stability and growth and the outlook remains positive for the next year despite many uncertaintities in the global economy. CTE’s confidence stems from its expanded market base, extended service portfolio, good portion of revenue and cost being same-shore/ same-denomination and a balanced revenue composition between Government and Commercial segment.

Highlights

Consolidated Results for the year ended 31st March, 2008.

Total Revenue on consolidated basis for CTE was Rs. 90.27 Crores (USD 22.58 Million) compared to Rs.23.40 Crores (USD 5.85 Million) of revenue for the 12 month period ended 31st March, 2007 which translates to over 286% growth year on year on annualized basis.
Profit after Tax was Rs. 15.44 Crores (USD 3.86 Million), compared to Rs. 5.05 Crores (USD 1.26 Million) of profit after tax for the 12 month period ended 31st March, 2007 which translates to 206% growth year on year on annualized basis.
Earnings per share for the period is Rs. 9.76, on basis of post issue paid up capital of Rs.1582.44 lakhs.
Consolidated Results for the Quarter ended 31st March, 2008.

Consolidated Results for the Quarter ended 31st March, 2008.

The consolidated revenues for the Q4 (January-March 2008) were Rs. 44.59 Crores (USD 11.16 Million).Compared to revenues of corresponding figures last year of Rs 5.89 crores (USD 1.47 Million), which translates to over 657% growth Year on Year on annualized basis.
Profit after Tax was Rs 8.20 Crores (USD 2.05 Million) for the Q4 quarter, compared to Rs. 0.96 Crores (USD 0.24 Million) of profit after tax for the corresponding quarter in the previous year (Q4 FY 2007) which translates to over 754% growth year on year.
Earnings per share for the period is Rs. 5.18, on basis of post issue paid up capital of Rs.1582.44 lakhs.

Others

Company completed acquisition of 4 companies in the financial year, namely, ComCreation, Reilly & Associates, Inc., Q-Soft Systems & Solutions and CellExchange, Inc., one in each quarter.
The Board of Directors have recommended a dividend of Re 1 per share (10 % on the paid-up equity capital of the Company) for the year 2007-2008 subject to approval of shareholders in the ensuing AGM.

Mr. Bhaskar Panigrahi, CEO, Cambridge Technology Enterprises Limited (CTE) said, “Last year was a land mark year for us wherein we grew by 286% engineered by our well-executed four-pronged strategy. This financial year, we would continue to focus on identifying and integrating high value and growth potential companies to enhance our customer base and consolidate our position in mid-sized customer segment. This year we hope to enhance our global delivery center base to China and Europe to offer multi-shore 24x7 service to our customers and also enter European market. The existing operations are being streamlined and refined to realize the best synergies.”

Mr. Ramesh Reddy, CFO, Cambridge Technology Enterprises Limited (CTE) said, “We have exceeded the guidance given in the beginning of the last financial year. The outlook for the year ahead remains positive despite the global challenges and our FY 2009 plan factors the challenges that our customers and competitors will be facing. This would help us to navigate to our goal to be the one among the top 20 mid-market IT services providers globally.”

About Cambridge Technology Enterprises

Cambridge Technology Enterprises (CTE) is a global services provider dedicated to serving the midsize market of enterprises and the midsize units of Global 2000 enterprises across the spectrum of business industries. Recognized as a thought leader and innovator of comprehensive Service Oriented Architecture (SOA)-based enterprise transformation and integration solutions and services, CTE provides solutions for all business challenges. CTE offers the same level of expertise to IT as it does to product development, business process outsourcing, and innovation consulting. CTE leverages its dedicated pool of talented professionals and its deep partner network and acts as a general contractor to help midsize enterprises meet today’s increased challenges and makes them future ready. CTE is a one-stop-shop for all global service needs. With offices throughout the US and the world, Cambridge Technology Enterprises focuses on local collaboration and global execution.

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