Cranes Software's H1 consolidated revenues increase 47%

Operating margins expand by 680 basis points at 53.3%
Net Profit grow by 55% to Rs.89.5 million
H1 EPS at Rs. 10.62

Mumbai, November 17, 2003: Cranes Software International Ltd. (CSIL), a global scientific and engineering software solutions provider, today announced its audited results for the quarter ended September 30, 2003.

Commenting on the performance for Q2 FY 2004, Mr. Asif Khader, Managing Director, Cranes Software International Limited, said:

"Our financial performance in the second quarter this fiscal year bears further testimony to the merits of focused activity. Our relationships with the global scientist and engineer community continue to grow deeper as we facilitate improvements in their professional work environment through ongoing releases of new products, tools and processes. Launch of the Japanese version of SYSTAT 10.2, the CMTI partnership in the manufacturing vertical and the extension of the Texas Instruments relationship are the big achievements of the last three months that bring us closer to our vision of gaining significant global competitiveness in the future."

Group performance review:

Corresponding quarter performance: Q2 FY 2004 (July - September 2003) v/s Q2 FY 2003 (July - September 2002)

• Operating revenues increased 38% to Rs.194.4 million compared to Rs.141.1 million.
• Operating profit higher by 54% at Rs. 107.9 million from Rs. 70.0 million.
• Operating margin expanded by 590 basis points at 55.5%.
• Net profit after tax increased by 45% to Rs. 53.2 million from Rs. 36.7 million.

• Operating revenues increased 47% to Rs. 329.9 million compared to Rs. 224.8 million.
• Operating profit higher by 68% at Rs. 175.8 million from Rs. 104.4 million.
• Operating profit margin expanded by 680 basis points at 53%.
• Net profit after tax increased by 55% to Rs. 89.5 million from Rs. 57.6 million.

• Operating revenues grew by 135% to Rs. 174.1 million compared to Rs. 74.2 million.
• Operating profit was higher by 131% at Rs. 98.9 million from Rs. 42.8 million.
• Net profit after tax increased 191% to Rs. 56.4 million from Rs. 19.4 million.

• Operating revenues grew by 101% to Rs. 287.3 million compared to Rs. 142.6 million.
• Operating profit was higher by 120% at Rs. 166.4 million from Rs. 75.6 million.
• Net profit after tax increased 141% to Rs. 93.1 million from Rs. 38.6 million.

• Systat Software Inc., CSIL's wholly owned subsidiary, released the Japanese version of its flagship software product SYSTAT. This was the first localized version of SYSTAT 10.2, targeting a significant user base in the second largest IT market in the world, Japan. Currently, further product updates and upgrades of SYSTAT and other acquired products are also under development at Systat Software's Bangalore-based R&D facility.
  
  Following the acquisition of SYSTAT, Systat Software Inc. launched an updated version 10.2 in April 2002 developed by its 57-person dedicated team of statisticians and engineers. Offering new and upgraded features, SYSTAT Version 10.2 has enabled substantially higher usage and revenue inflows. In addition, TableCurve 3D version 4.0, also introduced over the last twelve months, has been well received in user markets.
  
  

• Systat Software Inc. has enhanced the global visibility of its products by using the Internet as an effective marketing tool. Its range of proprietary software products have been made available on its website www.systat.com and recent response is extremely encouraging. Worldwide users can obtain product information and download limited period trial versions, while those in U.S. and Canada can purchase online, a facility that will soon be extended to some other countries. In the quarter under review, the website clocked over seven million hits, over 46,000 trial downloads and over 23,000 registrations, contributing to the rapidly expanding user base.
  
  

• CSIL has extended its relationship with Texas Instruments to the ASEAN region, where it will distribute TI's digital signal processing (DSP) software tools. CSIL has already established a partnership with Texas Instruments to popularise the use of TI's tools in India. Over 150 TI DSP labs have been established in collaboration with CSIL across India.
  
  

• Following the previously announced collaboration with the Central Manufacturing Technologies Institute (CMTI), to address the research requirements of manufacturing industries, CSIL has taken its vertical focus strategy, in the Consulting division, forward and is in discussions with leading companies operating in target industry segments.
  
  

• CSIL's expertise and experience in addressing the specific requirements of scientists and engineers worldwide has enabled the Company to forge multiple product alliances. Ongoing enhancements to CSIL's software product distribution portfolio provide Indian scientists access to globally leading software. In the first half of the current fiscal year:
  
  

  • Two MATLAB enhancement tools, Communication Blockset 2.5 and SimMechanics 2, were made available as a part of CSIL's ongoing alliance with its principal, The MathWorks Inc. The former facilitates an improved design environment for communication engineers, while the latter provides engineers with significant time / cost savings through improved design capabilities.
    
    

  • Also released were its U.S.-based principal AdventNet Inc.'s Web NMS 4.0 tool that enables delivery of telecom network management solutions and a new version of ManageEngine, providing proactive visibility and allows effective management of telecom applications and supporting infrastructure.
    
    

• The number of overall customer relationships sequentially increased by over 30% in the second quarter, comprising leading international universities and corporate customers. (four Fortune 500 companies).
  
  

• HR headcount increased by 20 in the first half of the current fiscal year to 215
  
  

  • Support resources in CSIL's Operations Management Group reduced from 54 to 41 as part of the cost rationalisation initiative
    
    

  • Sales and marketing resources in the Asian region were enhanced significantly during the period
    
    
  • The SYSTAT R&D team enhanced with nine new members added over the six-month period