Cranes Software's 4Q consolidated revenues increase 97% to Rs. 517 million

Net Profit grows by 182% to Rs. 152.1 million
FY 2004 EPS at Rs. 38.31

Bangalore, May 4, 2004: Cranes Software International Ltd. (CSIL), a global scientific and engineering software solutions provider, today announced its unaudited results for the quarter ended March 31, 2004.

Commenting on the performance for Q4 FY 2004, Mr. Asif Khader, Managing Director, Cranes Software International Limited, said:

"We are greatly encouraged by our financial performance in the fourth quarter that has provided positive momentum for the next fiscal year. We are confident that our operating initiatives during the year will allow the continuation of the significant outperformance achieved over the last several years.

In FY 2004, Cranes Software has made substantial strides towards its objective of achieving its 'global vision'. We now own a substantial suite of global software products used by over 2 lakh scientists and engineers worldwide. We have a global presence that extends across 5 direct offices and 29 distributors across 33 countries worldwide. We have significant international technical, managerial and product development experience on board. Cranes has expanded its global ownership following our recent GDR offering that saw strong demand from high quality international investors. And the final global dimension comes from the recognition we have received in the international marketplace: for our products that have been rated as 'Top 5 products' by the Scientific Computing and Instrumentation journal apart from Cranes being named the #1 Indian Technology Company by Deloitte Touche Tohmatsu."


Group performance review:

Annual review: FY 2004 (April - March 2004) v/s FY 2003 (April - March 2003)

• Operating revenues increased 86% to Rs. 1136.9 million compared to Rs. 610.1 million.
• Operating profit higher by 74% at Rs. 516.6 million from Rs. 297.6 million.
• Net profit after tax increased by 132% to Rs. 325.6 million from Rs. 140.5 million.
• The Board has recommended a regular dividend of Rs. 1.5 per share (15%) and an additional one time special dividend of Rs. 1.5 per share (15%) for the year.

• Operating revenues increased 100% to Rs.517 million compared to Rs. 257.2 million.
• Operating profit higher by 29% at Rs. 184.5 million from Rs. 143.2 million.
• Net profit after tax increased by 182% to Rs. 152.1 million from Rs. 54 million.

• Operating revenues grew by 105% to Rs. 988.3 million compared to Rs. 481.4 million.
• Operating profit was higher by 75% at Rs. 484.2 million from Rs. 276.3 million.
• Net profit after tax increased 131% to Rs. 324.9 million from Rs. 140.5 million.

• Operating revenues grew by 91% to Rs. 436.1 million compared to Rs. 228.6 million.
• Operating profit was higher by 21% at Rs. 177.8 million from Rs. 146.8 million.
• Net profit after tax increased 130% to Rs. 159.7 million from Rs. 69.3 million.

• Sigma Product Line acquisition

  CSIL acquired Sigma product line (SPL) from SPSS Inc. for US$ 13 million. As a part of the transaction, CSIL acquired SPL's customers, personnel and fixed assets apart from all related intellectual property. SPL has an established base of over 100,000 on a global basis, largely in the pharmaceutical / biotechnology marketplace. Current users include Merck, Eli Lilly, Pfizer and NASA, each of which has a few thousand installations. SPL's current annual revenue run rate is US$ 6.5 million.
  
  

• Launch of SYSTAT 10.2 Japanese version

  CSIL 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. CSIL had previously launched version 10.2, following the acquisition of SYSTAT, developed by its dedicated product R&D team located at Bangalore.
  
  

• ASEAN distribution of Texas Instruments' DSP software

  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 and over 150 TI DSP labs have been established across the country. CSIL's recently incorporated Singapore-based subsidiary will support this initiative apart from exploring further business opportunities in the region.
  
  

• Continuing MEMS research initiative

  CSIL has continued to invest in the development of disruptive technologies. Its CranesSci MEMS Lab initiative (founded in collaboration with the Indian Institute of Science, Bangalore) continues to develop IPs in the areas of Micro-Electro Mechanical Systems.
  
  

• Wireless solution developed for Tektronix

  CSIL's developed an 802.11a/ b/ g technology-powered WLAN test measurement and analysis solution for Tektronix Instruments. The division has recently partnered with National Instruments, a market leader in test and measurements industry, to provide solutions for wireless LAN testing.
  
  

• Ongoing product version launches in India

  CSIL's expertise and experience in addressing the specific requirements of scientists and engineers worldwide has enabled the Company to forge product distribution alliances with several leading global companies. Several new versions / enhancements were released during the year, further expanding the range of the portfolio under third party distribution.
  
  

• Customer perspective:

  CSIL's proprietary range of software products currently has a licensed user base of over 200,000 globally. Being desktop products, product installations range from single retail user licenses, to several thousand licenses sold to academic institutions, government agencies and corporates.
  
  

  • During the year, the acquisition of the Sigma-series product line enhanced the number of customer engagements with the addition of SPL's existing users.
    
    

  • Launch of SYSTAT Version 10.2 and subsequently the localised Japanese version of the product saw strong demand amongst target segments.
    
    

  • CSIL's key clients during the year included several marquee names such as 3M, Abbot Gmbh, AGFA, Alcatel Alsthom, Allied Signal Iropharm, Amersham Health, AstraZeneca, Audi, Aventis, Bausch & Lomb Inc, Bayer AG, BMW Rolls Royce,Bosch Telecom,BP International, Braun GmbH, British Aerospace, British American Tobacco, Carl Zeiss, Deutsche Bank, Dunlop, Merck, Ericsson Mobile, EXXON, Fujitsu, Glaxo Smithline, Johnson & johnson.
    
    

  • During the year, CSIL expanded its global distribution network by adding offices in Singapore, Erkrath in Germany and Boston in the U.S. apart from increasing its presence in eight additional countries through its distributors. This has increased the number of direct offices to five and its presence in over 33 countries worldwide through its distributors.
    
    

• GDR offering successfully closed

  CSIL successfully closed its offering of [exact number] GDR's aggregating US$ 11.59 million. The GDR's were priced at US$ 6.65 and have recently been listed on the Luxembourg Stock Exchange.
  
  

• Board of Directors expanded

  CSIL's shareholders approved the appointment of three independent Directors to the Company's Board.
  
  

  • Ronald Brown is the original author of the statistical software products TableCurve 2D, TableCurve 3D and PeakFit, previously acquired by CSIL. He now heads the ongoing development of these products as CSIL's Chief Software Architect.
    
    

  • Ajay Singh's career in public administration has seen him associated with several key government agencies. Ajay was previously an Advisor to the Minister of Communications and Information Technology and part of the Government of India's IT policy think tank.
    
    

  • Mirza Yawar Baig has extensive experience in managerial and organisational development and training. Currently, he is a consultant to the faculties of several academic and corporate institutions in Indian and the U.S.
    
    

  • CSIL recently introduced one of India's foremost computational biologists, Dr. Manju Bansal to its board. She is currently a Director at the Institute of Bio-informatics and Applied Biotechnology, Bangalore, and a Professor in the Molecular Biophysics Unit at the Indian Institute of Science, Bangalore. She brings with her 27 years of outstanding experience in her areas of specialization, which is expected to contribute significantly overall to CSIL's ongoing R&D-based endeavours and specifically to the development initiatives of CSIL's Sigma product line.
    
    

  • CSIL's Board now comprises nine Directors, of which 3 are independent Directors. CSIL follows high standards of corporate governance. The Board that is actively involved in providing directional guidance to the business.
    
    

• HR perspective

  CSIL added 29 employees during the year taking the aggregate headcount to 257. Hiring was focused on sales, marketing, R&D and training. The employee addition numbers include the 10-strong Chicago-based development team added to CSIL with the SPL acquisition, apart from SPL's sales and distribution office in Germany.