Mr. Balakrishnan continued, “While we wait to complete the rollout of our new products and services and for the economic situation to improve, we are instituting very tight controls on our expenses. Our cash burn of $0.9 million this quarter is half that of the average of each of the preceding four quarters, and our operational expenditure is a third lower than the same period last year. We remain focused on building our business for the long-term and believe Rediff is well positioned throughout the India market, especially as networks are further built out and speeds improve, devices become more affordable and as the global economic environment improves. Sustainable, long-term shareholder value remains the priority for our Company."
(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 Second fiscal quarter ended September 30, 2012 are appended in tabular form to this press release. A script of the earnings results conference call held on October 26, 2012 will also be made available on Rediff’s Investor Information website at investor.rediff.com.
About Rediff.comRediff.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 SEPTEMBER 30, 2012|
(All figures are in US$ millions, unless otherwise indicated below)
|Quarter ended September 30|
Cost of Revenues*
|Gross Margin %||35||%||45||%|
|Foreign Exchange gain (loss)||(0.03||)||(0.07||)|
|Equity in net loss of equity method investee||-||(0.09||)|
|Net loss before income taxes||(2.34||)||(2.64||)|
|Net loss per ADS (in US dollars), basic||(0.085||)||(0.096||)|
|Net loss per ADS (in US dollars), diluted||(0.085||)||(0.096||)|
|Weighted average ADSs outstanding (in millions)||27.59||27.57|
|* Stock-Based Compensation included in:|
|Cost of Revenues||0.02||0.02|
- 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.