Our cash balance stood at $25.0 million, as of December 31, 2011, and we continue to invest approximately $2.0 - $2.5 million per quarter in our business. With our cash on hand, we believe we have sufficient working capital to meet our immediate liquidity needs and to execute on our strategy, including investments in product development, sales diversification and the entrance into new markets.
Further details of Rediff.com’s results for the third fiscal quarter ended December 31, 2011 are appended in tabular form to this press release. A script of the earnings result conference call held on January 25, 2012 will also be made available on Rediff’s Investor Information website at investor.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 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 the economies worldwide and in the sectors in which our clients are based, the slowdown in the Internet and IT sectors world-wide, competition, 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, the wide spread acceptance of the Internet as well as other risks detailed in the 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 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, 2011
(All figures are in US$ million, unless otherwise indicated below)
|Quarter ended December 31|
|Cost of Revenues *||(2.54||)||(2.76||)|
|Gross Margin %||47||%||53||%|
|Operating Expenses *||(4.00||)||(4.86||)|
|Depreciation / Amortization||(0.81||)||(0.84||)|
|Other Income (refer note below)||0.83||-|
|Foreign Exchange gain (loss)||(0.04||)||-|
|Equity in net loss of equity method investee||(0.01||)||(0.18||)|
|Net loss before income taxes||(1.20||)||(1.80||)|
|Net loss (refer to note below)||(1.20||)||(1.80||)|
|Net loss per ADS (in US dollars)||(0.043||)||(0.065||)|
|Net loss per ADS (in US dollars) diluted||(0.043||)||(0.065||)|
|Weighted average ADS Outstanding (in millions)||27.59||27.60|
|* Stock based Compensation included in:|
|Cost of revenue||0.01||0.02|
- Each ADS represents one half of an equity share.
- The above numbers are subject to audit and while no significant changes are anticipated, an audit could result in adjustments which would result in the audited numbers varying from the numbers set forth above.
- During the Fiscal year ended March 31, 2010 the company established an ESOP trust for the benefit of the employees and purchased 750,000 shares (equivalent to 1,500,000 ADS). During the quarter ended December 31, 2010 Trust purchased an additional 265,000 shares (equivalent to 530,000 ADS). These shares are treated as treasury stock and therefore are excluded from the EPS calculations.
- During the fiscal year ended March 31, 2011 the Company acquired Vubites India Private Limited and consolidated its result of operations.
- During the quarter ended December 31, 2011 the company exited from one of its equity investments, which accounted for a one time gain from sale of investment of US$ 0.75 million. Excluding the effect of this one-time gain, Net loss for the quarter ended December 31, 2011, was $1.95.