Sigma Advanced Systems Limited · NSE:SIGMAADV
Sigma Advanced Systems — Megasoft — Q3 2010 Earnings Presentation
19 slides from Sigma Advanced Systems's earnings presentation, November 2010
Slide 1: Company Performance Analysis & Overview - Q3 2010 Results
COMPANY PERFORMANCE ANALYSIS & OVERVIEW OVERVIEW- Q3 2010 RESULTS November 2010
Slide 2: Contents
Contents Financial summary – Q3 2010 Company Evolution to date Business transformation highlights C Current t state t t off business b i & financial fi i l outlook tl k Growth drivers
Slide 3: Q3 2010 – financials
Q3 2010 – financials 2010 Q3 2009 Q3 % Change Rs lakhs Rs lakhs % Revenues 4,284 8,110 (47%) EBIDTA 1,360 , 803 69% Cash profit 947 (429) 321% PAT 607 (948) 164% EPS (Rs) 1.37 (2.12) 165% Revenues q on q increase 10% in US$ terms as against 2% in INR on account of sharp INR appreciation during the q
Slide 4: Balance Sheet
Balance Sheet As at As at 30 Sep 2010 31 Dec 2009 Change Rs lakhs Rs lakhs % Liabilities Shareholders' Funds Shareholders 13,213 13 213 11,568 11 568 14.23% 14 23% Loans 14,039 19,717 ‐28.80% 27,252 31,285 ‐12.89% Assets Fixed Assets (net) 17,200 18,150 ‐5.23% Investments 1,212 1,212 0.00% Net Curre
Slide 5: Company Evolution
Company Evolution 2000: XIUS established as a telecom products company A high technology mobile telecom company – great products and patents Over 63 patents filed globally (19 already granted till date) Many global firsts in the areas of Mobile Prepaid billing and real time call management, roaming
Slide 6: Company Evolution M&A history
Company Evolution M&A history January 2004: Megasoft India • Became a listed entity through this M&A • Gained offices and presence in US, Malaysia, Europe October 2006: Visualsoft India • Gained valuable real estate Assets & off-shore development p infrastructure September 2007: BCGI USA: • Leveragi
Slide 7: Result…XIUS is a transformed entity
Result…XIUS is a transformed entity Close to 80% of current revenues annuity based – stable, predictable and generating cash month on month Over 75% revenues from large tier 1 carriers Examples: Sprint, US Cellular, Telefonica group, Teleglobe, America Moviles, Telecom New Zealand, Celcom- Tunetalk
Slide 8: Poised for greater growth
Poised for greater growth 2008 & 2009 economic situation was challenging for the company Could not sell real estate asset to reduce debt burden Top line growth was difficult BCGI turn-around took a longer time resulting in operating losses and cost overruns remaining for a longer time than planned.
Slide 9: EPS
EPS 14.00 12.47 12.00 10.00 8 00 8.00 7 36 7.36 6.00 5.48 4.00 2.00 0.00 -2.00 2007 2008 2009 2010 (Annualised) -4.00 -6.00 -4.89
Slide 10: Smaller and Stronger
Smaller and Stronger EBIDTA 35 0% 35.0% 31.7% 30.0% 25 0% 25.0% 20.0% 15.0% 14.0% 12.7% % 10.0% 5.0% 0.0% 2008 2009 2010 Q3
Slide 11: Product Revenues
Product Revenues 80.0% 0 0% 70.0% 68 0% 68.0% 60.0% 50 0% 50.0% 40.0% 30 0% 30.0% 20.0% 15.0% 10.0% 10.0% 7.0% 0.0% Prepaid Roaming Infrastructure Mobile Commerce
Slide 12: Debt Reduction
Debt Reduction 250 231 200 Rs croress 140 150 100 50 Post sale of Corp p Bldg g at Hyd – Total debt Rs 90 cr 0 2009 Q3 2010 Q3 40 38 32 30 ores 20 Rs cro 20 Covered by receivables o/s < 180 days 10 0 Term loan Wkg capital Others
Slide 13: Debtor days much lower
Debtor days much lower 250 230 200 150 118 100 50 0 2009 Q3 2010 Q3
Slide 14: Current Business Status
Current Business Status Steady quarterly revenues of around Rs. 42-45 Crores, with about 30% + EBITDA Fully & Solely focused on Mobile telecom markets Strong Brand recognition across US & LatAm Markets revenue transformation to Recurring, predictable Managed services model Top Tier 1 Clients for com
Slide 15: Key Management Personnel
Key Management Personnel GV Kumar: MD & CEO K i B Kevin Bresnahan: h EVP & Head H dO Operations ti ( US Offi Office H Head) d) Mitch Cornell: Head SBU (Americas) Upendra Bhatt: Head SBU (Rest of the World) Sridhar T VP & Head (HR) Bob Hackney : VP Operations Sridhar Lanka: Head Engineering and Devel
Slide 16: A unique Indo-American company
A unique Indo-American company Combines best practices of both cultures (US & India) creating a high quality & cost effective entity. Functional responsibilities located where they can be delivered most cost efficiently and effectively U.S. – corporate Mgmt, marketing, strategy, product management,
Slide 17: Growth Drivers
Growth Drivers I. Current Core Business still growing: o Fast growing pre-paid mobile Market in the USA: 1. US Pre-paid base expected to double in the next 18 – 24 months due to credit squeeze– all carriers enhancing their prepaidid offerings. ff i 2. uniquely positioned to seize this opportunity –
Slide 18: Growth Drivers - New launches
Growth Drivers - New II. Growth kickers from New launches Mobile Payments and Mobile wallet applications commercially launched already – high growth in India, LatAm & emerging markets for larger carriers New MTT Platform is being well received (over 10 pilots already on globally) Mobile M bil advert
Slide 19: Thank you
Thank you Contact: srinath@megasoft.com