Sify's ( SIFY) American depositary receipts dropped 10% after the company reported that it swung to profit in the first quarter.

The company earned $1.36 million, or 3 cents an ADR, compared with a loss of $2.14 million, or 6 cents an ADR, a year ago. Analysts polled by Thomson First Call were forecasting a loss of 1 cent an ADR. Revenue rose 29.1% to $28.7 million. Analysts were expecting revenue of $30.27 million in the most recent quarter.

By segment, the company's enterprise services division revenue increased 36.8% to $16.41 million and access media revenue rose 12.7% to $10.15 million.

Sify had a cash balance of $55.27 million at the end of the quarter after capital expenditure of $6.7 million during the quarter.

The company also announced that chairman Raju Vegesna has been named as the company's managing director and CEO, replacing R. Ramaraj. Ramaraj agreed to be available as a consultant to the company.

"We continue to gain recognition for our services in India and internationally, and lead the market across businesses," the company said. "We are well poised to continue growing them with new initiatives, adequate cash reserves and our cutting edge IP expertise."

The company's ADRs were trading at $8.36, down 93 cents.

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