Aztecsoft Financial Results Q1-09 - Aztecsoft Posts Double Digit Sequential Revenue Growth

Revenues grew sequentially (Q-o-Q) by 11.7% in INR terms and 5.8% in US$ terms. Revenues grew by 30% (Y-o-Y) in INR terms. For the first quarter ended June 30, 2008, Aztecsoft has posted revenues of Rs. 76.77 Crores and a net loss of Rs. (9.29) Crores on a consolidated basis.

Bangalore, India, July 27, 2008 --( Key Highlights:

Improved Profitability – Improved sales mix, tight control on operations and expenses and better utilization has helped the Company to improve Gross Profits from 31% in Q IV-08 to 35% in QI-09 and EBITDA from 14% in QIV-08 to 18% in Q1-09. However, the sudden depreciation of the rupee resulted in a non-cash charge of Rs. 22. 24 Crores being provisioned on outstanding derivative instruments. Consequently, the Company has reported a net loss of Rs. 9.29 Crores for the quarter and expects this provision to reverse during subsequent quarters.

Client base growth - During this quarter, Aztecsoft added 6 new clients with a good mix of mature players and emerging clients. The total active client count stands at 75 at the end of Q1-09. The client additions include a leading developer of global transaction-based tax calculation and compliance systems and application delivery Infrastructure Company, a pop TV channel, a mobile application development company, a large global electronics, gaming, entertainment and financial services company etc. The quarter saw a strong revenue growth coming from existing clients and partially from new clients added in this quarter.

Human capital growth – During the current quarter, the Aztecsoft’s most important asset, namely its human capital stands at 2,050 as at June 30, 2008. Blended offshore utilization is at 78% (excluding campus/trainees recruits) and at 70% after considering campus/trainees recruits for the quarter under review.

Strong & Liquid balance Sheet - Cash and cash equivalents stand at Rs. 74.35 Crores as on June 30, 2008 and account for 31+% of asset base as on June 30, 2008.

Acquisition by MindTree Limited - During the quarter, MindTree Limited announced its intention to acquire Aztecsoft Limited. MindTree expects to complete the open offer process by the end of July and Aztecsoft will thereafter become a subsidiary of MindTree.

Management Comments

Announcing the financial results, Mr. K. B. Chandrasekhar, Chairman of Aztecsoft said,
“We are pleased that even in the current uncertain global economic conditions, we have had another satisfying quarter with about 12% sequential growth in INR terms. We continue to see good traction for Services and our expertise in our chosen niches continues to hold us in good stead. We are confident of achieving our revenue and profit guidance for the year.”

Mr. Samir Bodas, CEO of Aztecsoft said,
“On the back of a great QIV, we have again managed to show impressive Q-o-Q revenue growth and improved operational efficiency, leading to margin optimization. This has helped us grow our operating margins despite the impact of the annual wage increases during this quarter. Given the macro economic environment, we remain cautious, but are very well prepared operationally to capture the demand and continue to improve our operating performance."

About Aztecsoft Limited

Aztecsoft is a software engineering services partner for software product companies. Leaders in the OPD and Testing space, we provide Full-Lifecycle Product Engineering, Independent Testing, Professional Services and Sustained Engineering services to companies in the following domains: Application and Infrastructure Software, New Media and Internet, Financial Services Software and Life Sciences Software.

With over 1600+ products developed and tested so far, Aztecsoft has helped several top tier Enterprise and Consumer software companies ship some of the most complex software in the world! Aztecsoft's passion for technology, excellence and people gives their customers the best combination of expertise, experience and depth of services to make it the technology partner of choice.

The reasons why our customers prefer to work with us are that we provide 4 key advantages to them for their software engineering needs: increased speed to market, improved quality, managing uncertainty, and access to specialists.

Aztecsoft has won a number of industry awards for innovative HR practices from independent agencies, which is an external validation of Aztecsoft's consistent growth momentum.

To learn more about Aztecsoft, please visit or email

Zubin Tavaria
Tel: +91.80.25738005
Ext : 3675
Fax: +91.80.4110 0587
Email :

Sayan Dutta
Tel : +91.80.2525 3891
Extn : 103
Fax : +91.80.2525 3887
Email :

Safe Harbor

Investors are cautioned that the above document may contain forward-looking statements that involve risks and uncertainties. Aztecsoft undertakes no obligation, to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise. Actual results, performances, or achievements could materially differ from those expressed or implied in such forward-looking statements.

Aztecsoft Limited
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