Sigma Advanced Systems Limited · NSE:SIGMAADV
Sigma Advanced Systems — Megasoft — Q1 2010 Earnings Presentation
19 slides from Sigma Advanced Systems's earnings presentation, May 13, 2010
Slide 1: Company Performance Analysis & Overview - Q1 2010 Results
COMPANY PERFORMANCE ANALYSIS & OVERVIEW- Q1 2010 RESULTS 13 MAY 2010
Slide 2: Contents
Contents Financial summary – 1Q 2010 What went wrong last two years Actions taken by the Company to rectify Business transformation highlights Current state of business & financial outlook Growth drivers
Slide 3: 1Q 2010 – financials
1Q 2010 – financials 2010 Q1 2009 Q1 % Change Rs lakhs Rs lakhs % Revenues 3,926 7,522 (47%) EBIDTA 1,284 870 48% Cash profit 854 250 242% PAT 417 12 3375% EPS (Rs) 0.92 0.04 2200%
Slide 4: Balance Sheet
Balance Sheet As at As at 31 Mar 2010 31 Dec 2009 Change Rs lakhs Rs lakhs % Liabilities Shareholders' Funds 12,194 11,568 5.5% Loans 17490 19717 -11.3% 29,684 31,285 Assets Fixed Assets (net) 17,653 18,150 -2.73% Investments 1,212 1,212 0% Net Current Assets 10,822 11,923 -9.2% 29,687 31,285 Net Wo
Slide 5: What went wrong in the last two years?
What went wrong in the last two years?
Slide 6: EPS
12.47 3 7.36 3.72 Rupees oO N fF} OBO 2007 2008 2009 2010(annualised) I ON b ® bd XIUS-begi Proprietary
Slide 7: What went wrong in the last two years
What went wrong in last the two years Markets went through a recession in 2008 and 2009 , just after the acquisition of BCGI – wrong timing Lost clients due to recession and thus BCGI revenues shrank (much lower than projected when acquired) IT services division suffered revenue and cash losses duri
Slide 8: Actions taken by the company
Actions taken by the company Operational costs in telecom (incl. BCGI) was brought down from around 3.7 Mn $ / month to around 1.7 Mn $ / month, by All round head count reduction Rationalization of Data centers & operating costs in US Shifting all back office functions to India Divested IT Services
Slide 9: Resultant business transformation
Resultant business transformation These actions over the last two years have resulted in a turn- around and transformation of the company’s business profile Smaller and stronger Cash generating Lower debts Drastically lower debtor days cycle Max. revenues from large, tier 1 carriers Max. revenues ar
Slide 10: Smaller and Stronger
Smaller and Stronger EBIDTA 35.0% 31.7% 30.0% 25.0% 20.0% 15.0% 14.0% 12.7% 10.0% 5.0% 0.0% 2008 2009 2010 Q1
Slide 11: Positive Earnings Per share growth
Positive Earnings Per share growth EPS of 3.76 on annualized basis EPS of -4.99
Slide 12: Changed Revenue & Customer Profile
Changed Revenue & Customer Profile More annuity revenues with monthly billing cycles Max. revenues from large tier 1 Carriers
Slide 13: Debt & Debtor days much lower
Debt & Debtor days much lower xe Debt Reduction (Rs. crores) 250 174 ™ Mar-09 ™Mar-10 Mar-09 Mar-10 QXIUS-begi Reduced Debtor Days 240 110 ™ Mar-09 a ™ Mar-10 Mar-09 Mar-10 XIUS-begi Proprietary
Slide 14: Current Business Status
Current Business Status Steady quarterly revenues of around Rs.39-40 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 comp
Slide 15: Key Management Personnel
Key Management Personnel G.V.Kumar: MD & CEO Kevin Bresnahan: EVP & Head Operations ( US Office Head) 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 Development Ken Sonberg: Head
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: Technology & Innovation
Technology & Innovation Technology & Innovation – a core strength Strong Basket of products and IPRs (over 60 global patents filed till date and 19 already granted) Two new products launched in 2009 and Three new launches slated in 2010 Company uniquely positions itself as a real-time mobile transac
Slide 18: Growth Drivers
Growth Drivers 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 prepaid offerings. 2. uniquely positioned to seize this opportunity – 1. Company already a leader in US pre-paid segm
Slide 19: Thank you
Thank you Contact: srinath@megasoft.com