Cambridge Technology Enterprises announces its results for Q3 FY17
Reiterates its focus on AI and Machine Learning
Building the base to deliver the next phase of growth
Focused on providing integrated offerings to clients
Hyderabad, India, 07 Feb, 2017: Cambridge Technology Enterprises (NSE: CTE; BSE: 532801), an IT services leader focused on the convergence of big data and cloud, today announced its unaudited financial results for the quarter ended Dec 31, 2016.
- CTE is focused on providing integrated offering for Big Data, Data Science and Cloud services and reiterates itsfocus on Artificial Intelligence (AI) and Machine Learning. We believe:
- Big Data and the Cloud are game changers transforming how businesses are defined, designed and delivered and enterprise value is captured.
- AI and Machine Learning will define industries both new ones and old, transforming data into a valuable knowledge asset and a catalyst for disruption.
- The trend is accelerating
- As it is estimated that 2.5 quintillion bytes of data is created daily with enterprise-generated data expected to exceed 240 exabytes daily by 2020.
- IBM predicts that analytics alone will be a USD 315 billion market by next year, roughly triple the size of India’s IT exports.
- In a KPMG survey of C-suite executives, 99 percent said that analysis of big data was important to their strategy.
- A global resource shortage fuels opportunity with an estimated shortage of 290,000 data scientists in the U.S. by 2018 predicted by a McKinsey study.
- CTE helps organisations seeking to realize their business potential to capture new enterprise value by leveraging the convergence of big data and the cloud and unleashing the potential of Artificial Intelligence and Machine Learning.
- Integrated Offering
As real-time Big Data, AI and Machine Learning are breaking down the traditional best practices and structure barriers, creativity and innovation is what is needed to be ahead of the curve.
- Cambridge Innovations: Work with the most innovative U.S. startups, helps us identify cutting edge technologies and attracts the best talent to work with CTE.
- Cambridge Bigdata: Build and manage technologies for some of the largest companies in the world.
- Cambridge DataScience: Assist CxOs make decisions by drawing substantial strengths in insights and data analytics.
- Cambridge Bizserve: Provides data support and managed services for the applications we built.
- Building the new base for the next phase of growth
In 2015, we proposed a two-year business plan for FY16 and FY17 to achieve minimum scale. CTE focused on three areas – building partnerships, acquiring referenceable clients in our chosen verticals and acquiring relevant expertise in technologies.
In FY15, the base revenues were INR 322.5 Mn and we believed that it will take us two years to get to a minimum scale, after which the markets will direct us to focus on specific verticals and technologies.
Based on market feedback, we are focused on providing an integrated offering and creating value with disruptive technologies for our clients. We are focused on consolidating our base i.e. keeping the right pieces and putting it all together in a thoughtful manner to improve our profitability and scalability. This will be our focus for the next six months – to build and consolidate things that are profitable and scalable.
Old Base New Base 2015 2017 Revenues INR 322 Mn INR 754 Mn in 9MFY17 PAT INR 31 Mn INR 125 Mn in 9MFY17 Employees 184 ~350 Verticals 2 7 Offices 5 9
- Vision 2020The management believes the process of consolidating our base will take six months, after which we will announce the plans about our next stage of growth for 2020.
- Management Quote Aashish Kalra, Chairman of Cambridge Technology Enterprises said, “Big Data fueled by AI and Machine Learning is the next natural resource, like air and water. We are in the midst of the single largest technological revolution. We have spent the last few years in building an organization to take advantage of this market. For the next six months, we are going to focus on building, stabilizing and consolidating the new base to achieve our next phase of growth for 2020.”
Financial Highlights: CTE’s performance is on track and consistent with the growth that it has delivered through the past seven quarters, since the inception of business plan focusing on the convergence of big data and cloud.
- Revenues have grown at an average of 92% in the last 7 quarters
- Quarter ended 31 Dec 2016 vs. Quarter ended 31 Dec 2015
- Revenue: 54 percent increase
- EBITDA: 139 percent increase
- Net Profit: 86 percent increase
|CAMBRIDGE TECHNOLOGY ENTERPRISES PERFORMANCE IN LAST SEVEN QUARTERS (INR Mn)|
|INR Mn||Revenues||% change (YoY)||EBITDA||% change (YoY)||PAT||% change (YoY)|
Consolidated Financial Highlights for quarter ending Dec 31, 2016:
|CAMBRIDGE TECHNOLOGY ENTERPRISES FINANCIAL RESULTS: QUARTER ENDED 31 DEC 2016 vs. QUARTER ENDED 31 DEC 2015 – YoY (INR Mn)|
|Particulars||31-Dec-16||31-Dec-15||Change in % (YoY)|
- The Hon’ble High Court of Judicature at Hyderabad has approved the Scheme of Reduction of Capital and a certified copy of Order dated 5th October, 2016 has been received by the Company. The Company continued to provide amortization of Goodwill for the Financial Year 2015-16 and for the quarter ended 30th June, 2016 amounting to INR 30.5 Mn pending
High Court Order. During the quarter, INR 15.2 Mn is reversed which is equivalent to fifty percent of the amount amortized. This amount is an exceptional item in the above Financial Results. The balance amount of INR 15.2 Mn will be adjusted in the next quarter i.e., March 2017.
- At CTE, we have less than two percent employees with H1B Visas and the change in US Visa policy has not impacted our business.
About Cambridge Technology Enterprises:
Cambridge Technology Enterprises (CTE) is an IT services leader focused on the convergence of big data and cloud. Recognized as a thought leader and innovator of enterprise solutions, CTE focuses on cloud application development and management, data warehousing, business intelligence and analytics on the cloud. Through designing and implementing enterprise IT strategies that leverage the cloud’s capabilities, CTE’s end-to-end services enable its customers to harness the data available to them. Its expertise across domains makes CTE a preferred choice for IT Strategy and Implementation to its customers. For more information, visit www.c7e.co or follow @cam_technology on twitter.
Forward-looking and Cautionary Statements:
Certain statements in this press release may contain statements concerning our future growth prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this press release. The Company assumes no obligation to update any forward-looking information contained in this press release. Any forward-looking statements and projections made by third parties included in this press release are not adopted by the Company and the Company is not responsible for such third party statements and projections.
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