Highlights-

• The company's revenue during the quarter ended June 2010 fell 46% to Rs 42.20 crore. The EBIDTA however increased 42% to Rs 12.92 crore on a year-on-year basis. The company posted a net profit of Rs 5.18 crore during the quarter under review as compared to a net loss of Rs 8.18 crore in Q2 CY 2009.
• The company benefited from the growth in the US Pre-paid mobile market through increased revenues from this sector.
• The performance during the quarter is not directly comparable as the company had divested its IT services business in October 2009.
• 65% of the revenue came from the prepaid & datacom real-time processing products while 10% of the revenue was contributed by the supply of small telecom infrastructure solutions to smaller regional telecom players. The other major contributor was the mobile roaming customer authentication products. Around 17% of the revenue was contributed by mobile commerce and various application products related to mobile commerce.
• During the quarter under review Megasoft (XIUS-bcgi) was offered a major upgrade of its INfinet Prepaid hosted solution in the USA.
• Megasoft (XIUS-bcgi) partnered Malaysian Mobile service operator Tune Talk and crossed the mark of 1 million subscribers in a short span of mere 10 months.
• Megasoft (XIUS-bcgi) powered Union Telephone's pre-paid wireless service.
• The company is looking for alliances in Latin America and the European corridor for its mobile roaming customer authentication products.
• The debtor day reduced to 108 during the quarter ended June 2010 as compared to 240 days during the corresponding quarter of the previous year.
• 80% of the revenue receivables are long term contracts which are billed monthly.
• The company has successfully changed from a licensing revenue based model to an application service provider model. Going forward the company plans to focus on prepaid connectivity, roaming platform and mobile commerce business.
• The company has over 63 patents filed globally out of which 19 patents have already been granted.
• 75% of the telecom revenue comes from tier-1 players like Sprint, US Cellular, Telefonica group, Teleglobe, America Mobiles, Telecom New Zealand, Celecon-Tunetalk (Malaysia), Loop Telecom etc.
• The company continues to win new deals in Latin America, USA and Asia while at the same time expanding further with existing customers.
• The total debt in the book as on June 2010 was Rs 178.12 crore, while the cash balance was Rs 24.55 crore.
• Barring Rs 10 crore worth of rupee loan all other loans are dollar denominated. Thus the company has a natural hedge in terms in hedging its dollar revenue receivables.
• The company has real estate currently valued around Rs 220 crore across Hyderabad and Vizag.
• As the real estate market improves the company plans to monetize the real estate which will be used to reduce the debt.
• Going ahead the growth from the US prepaid market will be the primary growth driver.