For immediate release. i-flex posts robust 17% QoQ and 44% YoY growth in revenues for the quarter ended December 2004

Transcription

1 For immediate release i-flex posts robust 17% QoQ and 44% YoY growth in revenues for the quarter ended December 2004 Operating Income grows 18% QoQ Net Profits for the quarter at Rs 45 crore grows 9% QoQ Products Business grow 25% QoQ (As per Consolidated Indian GAAP) Financials at a glance for the quarter and year ending December 2004 Indian GAAP Consolidated Operating Income US GAAP Consolidated Operating Income Quarter Rs. 300 crore Rs. 58 crore Rs. 45 crore Rs. 305 crore Rs. 54 crore Rs. 36 crore Highlights of the Quarter Robust revenue growth in all lines of business; Products business grows 25% QoQ; Services business grows 10% QoQ In spite of strengthening Rupee, operating income grows 18% QoQ Added 16 new customers in the quarter taking the tally of customers serviced to 528 across 111 countries The staff headcount on December 31, 2004 stood at 4,236 a gross addition of 444 employees. Continued thrust on geographic expansion, announced plans to open office in Russia, as part of the strategy to expand in the CIS countries and leverage the local skilled base; as well as China, as part of its strategy of enhancing its presence ASPAC. Page 1 of 5

2 Acquired Equinox Corporation, a specialized service provider to the mortgage industry to strengthen its position in the lending marketplace. Also acquired a 33% stake in French-based treasury software specialist firm, Login SA. Both initiatives are part of i-flex's inorganic growth strategy, aimed at strengthening its solutions portfolio for the global financial services industry. Products Business Won 13 customers for FLEXCUBE; DayBreak Lending Suite continues to show success, won a significant new account in US i-flex and IBM announced the availability of the FLEXCUBE, i-flex's core banking suite on a J2EE architecture using IBM Software, at the BAI-RDS show in US. As part of a global partnership agreement, IBM and i-flex will jointly market, sell and deliver FLEXCUBE for core banking. Announced the availability of its flagship product suite, FLEXCUBE, on Linux; an initiative by i- flex to keep its customers ahead in the competitive marketplace and deliver superior Total Cost of Ownership (TCO). Services Business Robust 10% QoQ and 68% YoY revenue growth on the strength of market success. Growth in the non-citibank share of revenues continues; now contributes 37% (up from 30% at the beginning of the financial year). Billing rates show increase of 7%; offshore revenues grow from 36% in the last quarter to 39% this quarter, maintaining the trend from the last quarter. Net increase of 161 staff to the PrimeSourcing business to meet market demands; Facilities expansion continues; added over 1,500 seats across Mumbai, Pune and Bangalore. Awards and Accolades The President of Chile, Dr. Ricardo Lagos, conferred the Order Bernardo O'Higgins, Great Official, on Mr. Rajesh Hukku, Chairman and Managing Director, i-flex solutions and cited Mr. Hukku's services to Chile's digital development and the role he and i-flex solutions played in making available state-of-the-art banking software to the Chilean financial services sector. The order is presented to foreign nationals who have made a difference to Chile. The Indian Merchants Chamber awarded i-flex the IMC Ramkrishna Bajaj National Quality Award for 2004 in the Services Category. The IMC Ramkrishna Bajaj National Quality Award is one of the most prestigious quality and business excellence awards in the country and is awarded to companies that demonstrate outstanding customer orientation and quality management systems The PHD Chamber of Commerce and Industry awarded i-flex the Brand Equity Award for creating a highly successful global brand, FLEXCUBE. Mumbai, January 28, 2005: The Board of Directors of i-flex solutions limited, a leading provider of IT solutions to the global financial services industry, has approved the results for the quarter ended December, Speaking on the occasion, Rajesh Hukku, Chairman & Managing Director said, We are delighted at the excellent growth momentum in both our lines of business. The revenue growth momentum, coupled with improved operating performance, demonstrates that our investments in R&D, Sales and Marketing and Delivery capability enhancement are yielding success in the Global marketplace. This quarter also we have continued to invest in new initiatives that are aimed at strengthening our leadership position in our marketplace, through our unique well hedged business model. R. Ravisankar, CEO, International Operations and Business Development added, The strategic investments that we have been making in enriching our solutions portfolio and expanding our go-tomarket initiatives are beginning to bear fruit, as demonstrated by the growing momentum of the business. Our growing traction with top tier institutions is a testimony to the success of our strategy of creating a differentiated business model focusing on domain expertise and intellectual property. Page 2 of 5

3 Said Deepak Ghaisas, CEO, India operations & CFO said, We are continuing to build our manpower, grow our infrastructure, invest in enhancing our portfolio and expand the global spread of our operations. We are seeing the results of these investments in our top line and the operating profits. Financial Performance Audited Financial Results for the quarter ending December 31, 2004 (All the amounts in Rs. crores) Consolidated Indian GAAP: i-flex posted a top line growth of 44% YoY with revenue for the quarter ended December 31, 2004 at Rs. 300 crore as compared to Rs. 208 crore for the corresponding quarter during the previous year. The revenue for the nine months ended December 31, 2004 stood at 780 crore representing an increase of 35% over the corresponding nine month period in the last financial year and represents 99% of the full year revenue for the FY04. The net income for the quarter stood at Rs. 45 crore representing 27% growth compared to the corresponding quarter in the previous year. i-flex solutions ltd and its subsidiaries Consolidated Income Statement Nine months Ended December 2004 December 2004 September 2004 December Cost of revenues (excluding depreciation & amortization) Gross Profit Selling & Marketing expenses General & Administrative expenses Depreciation & amortization Income for operations Interest Income Other Income/(expense) (5.5) (7.7) (1.9) 0.8 Income before provision for income taxes Provision for income taxes Page 3 of 5

4 Consolidated US GAAP: i-flex posted a top line growth of 44% with revenue for the quarter ended December 31, 2004 at Rs. 305 crore as compared to Rs 213 crore for the corresponding quarter during the previous year. The revenue for the nine months ended December 31, 2004 stood at Rs. 792 crore a 34% increase from the corresponding period in the previous financial year and represents 98% of the full year revenue for the FY04. The operating income for quarter stood at Rs 54.5 crore representing a 14% QoQ increase. The PBT for the quarter stood at Rs. 47 crore after accounting for the notional exchange loss and other income, and the net income after taxes stood at Rs 36 crore. i-flex solutions ltd and its subsidiaries Consolidated Income Statement Nine months Ended December 2004 December 2004 Quarter ended September 2004 December Cost of (Excluding depreciation and amortization) Gross Profit Selling & Marketing expense General & Administrative expenses Depreciation & Amortization Income from Operations Loss on equity investments 0.1 (0.2) Interest income and Other income/expense 14.0 (8.1) Income before provision for income taxes Provision for income taxes About i-flex solutions i-flex solutions (Reuters: IFLX.BO & IFLX.NS) is a world leader in providing IT solutions to the financial services industry. i-flex has serviced over 525 customers in more than 110 countries. i-flex s range of products and customized services enable financial institutions to cut costs, respond rapidly to market needs, enhance customer service levels and mitigate risk. i-flex s portfolio of offerings comprise FLEXCUBE, a complete product suite for retail, consumer, corporate, investment and internet banking, asset management, and investor servicing. Since its launch in 1997, more than 210 financial institutions in over 90 countries have chosen FLEXCUBE. FLEXCUBE has been ranked the world s No. 1 selling banking solution for two consecutive years, 2002 and 2003, by the UK-based International Banking Systems (IBS). FLEXCUBE was also named the Core Banking Solution of the Year and Application of the Year (2003) by the Banker (published by the Financial Times Group, London). Page 4 of 5

5 Daybreak TM is a comprehensive lending system that automates all aspects of financing for the consumer lending industry. Daybreak is designed to handle specialized lending requirements, enabling lending institutions to create new revenue streams and increase profits. Daybreak can be implemented as a specialized point solution or as part of a core banking solution such as FLEXCUBE. Reveleus TM, the industry's only metadata-driven information management infrastructure, coupled with a suite of integrated analytical applications, is a business intelligence solution. Reveleus improves the quality and consistency of information, thereby helping organizations reduce risk and improve efficiencies in information gathering, analysis and distribution. PrimeSourcing is i-flex's customized application software development and deployment methodology. PrimeSourcing allows financial institutions to cut costs and reduce risk because it is fuelled by SEI-CMM Level 5 processes and research from Centers of Excellence that remain focused on domain and technology areas such as Business Intelligence, CRM, Client Server and IBM Mainframe technologies, Enterprise Application Integration, Insurance and Payment Systems, and e- services. i-flex Consulting offers an end-to-end consulting partnership. It provides comprehensive business and technology solutions that enable financial services enterprises to create new business models, enhance competitive advantage in the digital market place and implement efficient ways to transact business. It provides business and IT strategy consulting, business and technology consulting, and process and quality consulting. i-flex has over 4200 employees operating from 11 development centers across India, Singapore and the USA. The company has a strong global reach with a sales, marketing and support presence covering 22 overseas locations, including 4 subsidiaries (i-flex solutions inc. in the USA, i-flex solutions b.v in the Netherlands, i-flex solutions pte. ltd. in Singapore and SuperSolutions Corporation in the USA). In addition, i-flex is represented in over 50 countries through 25 corporate business partners. i-flex also has strong alliance and/or implementation relationships with industry leaders such as Hewlett Packard, IBM, Intel, Microsoft and Oracle. i-flex and FLEXCUBE are registered trademarks of i-flex solutions. Reveleus, Daybreak and PrimeSourcing are trademarks of i-flex solutions and are registered in several countries. All company and product names are trademarks of the respective companies with which they are associated. For more information please visit: Contact: INDIA Eapen Thomas i-flex solutions Phone: , ext Fax: eapen.thomas@iflexsolutions.com INDIA/APAC Parvez Ahmad i-flex solutions Phone: or , ext Fax: parvez.ahmad@iflexsolutions.com India Jyothi Goswami Ad Factorspr Phone: jyothi@adfactorspr.com Page 5 of 5