Welcome!

Symbian Authors: Jack Newton, Kevin Benedict, Matthew Lobas, Shelly Palmer, RealWire News Distribution

News Feed Item

Rediff.com Reports Results for the Third Fiscal Quarter Ended December 31, 2012

Rediff.com, one of the premier online providers of news, information, communication, entertainment and shopping services to Indians worldwide, today announced results for its third fiscal quarter ended December 31, 2012.

The Company reported overall revenues for the 2012 third fiscal quarter of $3.97 million, 18% less as compared to $4.81 million reported in the 2011 third fiscal quarter. On a sequential basis, overall revenues increased 3% over $3.84 million reported in the 2012 second quarter.

Several of the new e-commerce and advertising initiatives the company has embarked on have begun to post positive increases and as a result, the Company’s core online advertising business in India grew approximately 7% (in dollar terms) on a sequential basis, despite the continued challenging economic landscape in the country. Revenue from Rediff.com’s online shopping marketplace business grew 11% on a quarterly sequential basis and is now up 85% year-over-year, while maintaining a positive margin of 12%. Additionally, during the 2012 third fiscal quarter, the range of products listed on the Rediff.com marketplace grew 7% from 172,000 SKUs to 184,000 SKUs.

The Company’s internet-based Local TV advertising business added three new TV channels to its distribution network in the third fiscal quarter of 2012 and now can reach up to 80 million individuals, while enabling local merchants in 10 Indian cities, namely, Delhi, Mumbai, Pune, Ahmedabad, Baroda, Surat, Mysore, Bangalore, Indore and Jaipur, to advertise on seven National TV channels – Zoom, NDTV Good Times, Times Now, ET Now, UTV Movies, Bindaas and ABP News at a city level. Local TV advertising was launched over the past year and has helped offset some of the weakness seen in the overall advertising market due to the economy, though there are signs that certain verticals are returning to more historical spending patterns.

“We are pleased with the progress we are making, and at the same time cautiously optimistic about the sequential growth in our overall revenues for the last three quarters. We believe that our recent growth is the result of the changes we implemented two quarters ago where we revamped our sales strategy for our online advertising businesses and focused investments on growth-driven programs, specifically related to our online shopping marketplace and internet-based Local TV advertising business,” said Ajit Balakrishnan, Chairman and Chief Executive Officer of Rediff.com.

“While broadband growth in India continues to progress, albeit at a slow pace, the mobile user base in India is growing fast and holds vast potential for our Company. As per Nielsen Informate Mobile Insight, there are already 27 million smartphone users in urban India and this market has grown rapidly. As a part of our strategy of positioning Rediff for future growth, we are focusing our efforts to drive usage of our services among mobile phone users, in addition to our traditional internet offerings. As a step in this direction, our popular services including Mail and News are now available in the form of mobile applications on leading operating systems such as Android, iOS, Blackberry, Windows, Symbian and Java,” Mr. Balakrishnan continued.

The Company reported an Operating EBITDA loss of $2.0 million for the 2012 fiscal third quarter as compared to an Operating EBITDA loss of $1.73 million in the comparable year-ago period.

The Company also reported a net loss of $3.0 million for the 2012 fiscal third quarter, including a non-cash goodwill impairment charge of $2.0 million arising from our acquisition of the print newspaper “India Abroad” in the United States in 2001, offset by a one time gain of US$ 1.4 million from the sale of an investment. The charge does not impact our cash or liquidity position.

(Operating EBITDA is a non-GAAP financial measure. Please see further below in a tabular form in this release, the reconciliation of Operating EBITDA to net income.)

Further details of Rediff.com’s results for the third fiscal quarter ended December 31, 2012 are appended in tabular form to this press release. A script of the earnings results conference call held on January 24, 2013 will also be made available on Rediff’s Investor Information website at investor.rediff.com.

About Rediff.com
Rediff.com (NASDAQ: REDF) is one of the premier worldwide online providers of news, information, communication, entertainment and shopping services to Indians worldwide. Founded in 1996, Rediff.com is headquartered in Mumbai, India with offices in New Delhi, India and New York, USA.

Safe Harbor

Except for historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and reflect our current expectations. Forward-looking statements are identified by certain words or phrases such as "may," "will," "aim," "will likely result," "believe," "expect," "will continue," "anticipate," "estimate," "intend," "plan," "contemplate," "seek to," "future," "objective," "goal," "project," "should," "will pursue" and similar expressions or variations or negatives of such expressions. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward-looking statements. These risks and uncertainties include but are not limited to the slowdown in economies worldwide and in the sectors in which our clients are based, the slowdown in Internet and IT sectors worldwide, competition, the success of our past and future acquisitions, attracting, recruiting and retaining highly skilled employees, technology, acceptance of new products and services, the development of broadband Internet and 3G networks in India, legal and regulatory policies, managing risks associated with customer products and the widespread acceptance of the Internet as well as other risks detailed in the annual report on Form 20-F and other reports filed by Rediff.com India Limited with the U.S. Securities and Exchange Commission. Rediff.com India Limited and its subsidiaries may, from time to time, make additional written and oral forward-looking statements, including statements contained in the Company's filings with the U.S. Securities and Exchange Commission and our reports to shareholders. Rediff.com India Limited does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the Company.

STATEMENT OF OPERATIONS

QUARTER ENDED DECEMBER 31, 2012

 

(All figures are in US$ millions, unless otherwise indicated below)

 
    Quarter ended December 31
    2012   2011
Revenues        
India Online   3.20   3.89
US Publishing   0.77   0.92
Total Revenues   3.97   4.81
Cost of Revenues *   (2.45)   (2.54)
Gross Margin   1.52   2.27
Gross Margin %   38%   47%
Operating Expenses *   (3.52)   (4.00)
Operating EBITDA   (2.00)   (1.73)
Depreciation / Amortization   (0.93)   (0.81)
Interest Income   0.51   0.56
Other Income (refer note below)   1.41   0.83
Goodwill impairment charge   (2.00)   -
Foreign Exchange gain (loss)   0.01   (0.04)
Equity in net loss of equity method investee   -   (0.01)
Net loss before income taxes   (3.00)   (1.20)
Tax   -   -
Net loss (refer to note below)   (3.00)   (1.20)
Net loss per ADS (in US dollars)   (0.109)   (0.043)
Net loss per ADS (in US dollars) diluted   (0.109)   (0.043)
         
Weighted average ADS Outstanding (in millions)   27.59   27.59
         
* Stock based Compensation included in:        
Cost of revenue   0.01   0.01
Operating expenses   0.15   0.21
 

Notes

  • Each ADS represents one half of an equity share.
  • The above numbers are subject to audit. An audit could result in adjustments which would result in the audited numbers varying from the numbers set forth above.
  • The company established an ESOP trust for the benefit of employees, which has acquired 1,015,000 shares (equivalent to 2,030,000 ADSs). These shares are treated as treasury stock and therefore are excluded from the EPS calculations.
  • During the quarter ended December 31, 2012 the company exited from one of its equity investments, which accounted for a one time gain from the sale of the investment of US$ 1.4 million included under the heading Other Income.

Non-GAAP Measures Note

Operating EBITDA and non-GAAP operating expenses are the non-GAAP measures in this press release. These measurements are not recognized under generally accepted accounting principles (“GAAP”).

Operating EBITDA represents loss from operations prior to adjustments for depreciation/ amortization, non-recurring items and other income or expense and tax. However, other companies may calculate operating EBITDA differently. Operating EBITDA is not intended to represent cash flows as defined by generally accepted accounting principles and should not be considered as an indicator of cash flow from operations. We have included information concerning Operating EBITDA in this press release because management and our board of directors use it as a measure of our performance. In addition, future investment and capital allocation decisions are based on Operating EBITDA. Investors and industry analysts use Operating EBITDA to measure the Company’s performance compared to historic results and our peer group. The reconciliation between Operating EBITDA and net loss, the GAAP measure, is as follows:

RECONCILIATION FROM OPERATING EBITDA TO NET INCOME

QUARTER ENDED DECEMBER 31, 2012

 

(All figures are in US$ millions)

 
   

Quarter ended December 31

    2012   2011
Operating EBITDA (Non GAAP)   (2.00)   (1.73)
Depreciation / Amortization   (0.93)   (0.81)
Interest Income   0.51   0.56
Other Income   1.41   0.83
Goodwill impairment charge   (2.00)   -
Foreign Exchange gain (loss)   0.01   (0.04)
Equity in net loss of equity method investee   -   (0.01)
Net loss before income taxes   (3.00)   (1.20)
Tax   -   -
Net loss (GAAP)   (3.00)   (1.20)
 

Non-GAAP operating expenses represent our operating expenses comprised of sales and marketing, product development and general and administrative expenses excluding depreciation and amortization and foreign exchange gain (loss). We have used non-GAAP operating expenses measure to compute our Operating EBITDA. A reconciliation of GAAP operating expenses to non-GAAP operating expenses is as follows:

RECONCILIATION FROM GAAP TO NON-GAAP OPERATING EXPENSES

QUARTER ENDED DECEMBER 31, 2012

 

(All figures are in US$ millions)

 
    Quarter ended December 31
    2012   2011
Operating Expenses (GAAP)   4.44   4.85
Depreciation/Amortization   (0.93)   (0.81)
Foreign Exchange gain (loss)   0.01   (0.04)
Operating Expenses (Non-GAAP)   3.52   4.00

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.