Sonata Software (SONATSOFTW) Q4 06/07 earnings summary

Executive summary

• FY07 consolidated total income was Rs.9,144.35m; results include TUI InfoTec for five months from 1 Nov 2006, making prior-year figures not comparable.

• Strategic expansion into Europe came through the acquisition of a 50.1% stake in TUI InfoTec, adding travel, tourism, hospitality, shipping and infrastructure-management capabilities.

Financial highlights

• Consolidated sales and services revenue was Rs.8,945.72m vs Rs.5,070.31m; total income was Rs.9,144.35m vs Rs.5,108.99m.

• Consolidated EBIDT was Rs.986.64m vs Rs.440.78m; PAT after minority interest and affiliate earnings was Rs.480.28m vs Rs.113.56m.

• Standalone total income was Rs.1,882.34m vs Rs.1,520.80m; PAT before prior-year exceptional items was Rs.351.29m vs Rs.261.60m.

• Standalone exports revenue was Rs.1,858.29m vs Rs.1,486.74m, a reported 25% increase; all standalone revenue came from exports.

Outlook and guidance

• Focus remained on extending new-customer relationships and converting prospects through differentiated solutions and partnerships; 24 new customers were added, including 8 in Q4.

• Current-year technology priorities included Web 2.0, service-oriented architecture and travel-domain technologies; four offshore development centers operated across Bangalore and Hyderabad.

• Hiring and retention supported growth plans; headcount rose to 1,635 at 31 Mar 2007 from 1,452 a year earlier.