Our cash balance stood at $25.0 million, as of December 31, 2011, and we continue to invest approximately $2.0 - $2.5 million per quarter in our business. With our cash on hand, we believe we have sufficient working capital to meet our immediate liquidity needs and to execute on our strategy, including investments in product development, sales diversification and the entrance into new markets.Further details of Rediff.com’s results for the third fiscal quarter ended December 31, 2011 are appended in tabular form to this press release. A script of the earnings result conference call held on January 25, 2012 will also be made available on Rediff’s Investor Information website at investor.rediff.com.
|STATEMENT OF OPERATIONS|
|QUARTER ENDED DECEMBER 31, 2011|
|(All figures are in US$ 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.