Cranes Software's consolidated revenues up 32% PAT higher by 29%

Bangalore, July 26th, 2007:: Cranes Software International Ltd. (Cranes), a company that provides Data Analytics and Engineering Simulation Software Products and Solutions, today announced its un-audited results for the first quarter ended 30th June, 2007.

On the occasion of the first quarter results announcement, Asif Khader, Managing Director, Cranes Software International Limited, said:

We have witnessed a solid start to the first quarter of the current financial year. We have maintained our approach of accelerating growth while servicing our relationships with existing clientele. The acquisitions of Dunn Solutions Group, Tilak AutoTech and Caravel Info Systems and Proland Software, as well as the launch of newer versions of software products - SYSTAT 12, NISA Version 15.0 for the Linux community and NISA Design Studio are evidence to the same. On the financial front, revenues are up 32% while net income is up 29% Q-O-Q, with operating margins of 53%. This growth has been possible despite very unfavorable impact of the Foreign Exchange Rate, with almost 80% of our operations being international and largely in US Dollar. Similar to other Indian IT Companies, we have also been adversely affected by the hardening of the Rupee. However, the growth achieved is indicative of the robust strategies and systems of business solicitation and execution in place. Going forward, we expect to continue to deliver strong operational and financial performance.

• Total income increased by 32% from Rs. 636.5 million to Rs. 840.7 million in the current quarter
  • Overseas revenues were up 27% at Rs. 673.6 million and now constitute 80% of total revenues.
  • Domestic revenues rose substantially from Rs. 88.5 million to Rs. 162.9 million in the current quarter.
• Operating profit improved by 33% to Rs. 444.7 million compared to Rs. 334.7 million in the previous corresponding quarter. Operating margins remained stable at 53%.
• Net profit after tax grew by 29% to Rs. 246.0 million translating into diluted EPS of Rs. 1.80 as against Rs. 1.47 reported during the same period last year.

• Total Revenues increased very marginally from Rs. 827.7 million.
  • Overseas revenues were up by 15% from Rs. 584.0 million to Rs. 673.6 million
  • Domestic revenues decreased by 26%, from Rs. 219.2 million in the previous sequential quarter.
• Operating profit increased by 13 % from Rs. 392.5 million.
• Net profit after tax (prior to adjustments) was Rs. 246 million. However, diluted EPS increased from Rs. 1.52 in Q4 FY07 to Rs. 1.80 in the quarter under review.

• Patents:
  
  A patent has been granted to Cranes for the invention entitled a MEMS Based Electrostatic Acoustic Transducer and Methods of Sensing Sound Pressure.
  
  The intellectual property has been awarded in India and the patents rights are jointly shared by Indian Institute of Science (IISc), Bangalore and Cranes Software International Ltd. This invention relates generally to a micro-machined acoustic transducer that has a sensing element which converts the acoustic signal to electrical signal. The proposed design in the patent, as implemented on MEMS device using capacitive sensing principle, provides higher tuning capabilities for design in terms of better response of the particular device, say a MEMS microphone. These micro devices like miniaturized microphones have potential applications in mobile phones, acoustic module for hearing-aids, PDAs etc.

  
  
  
• Launches:
  
  

  • SYSTAT Version 12
    
    Towards the end of the last quarter, the Company introduced the latest version of its award winning statistical analysis software package - SYSTAT Version 12 to provide scientists and professional researchers advanced statistical and graphical capabilities with an improved user interface and analytical efficiency.

  • NISA Version 15.0 for Linux
    
    Cranes Software launched the latest version of its flagship suite, NISA Version 15.0 for LINUX. The latest version gives the Linux community complete access to all the benefits including the availability of the software as an RPM package that will simplify the installation process and enhanced tools for seismic analysis to harmonize the requirements of power industry.

  • NISA Design Studio
    
    Cranes Software recently launched NISA Design Studio, in a continuous effort to address the needs of individual structural design consultants. Cranes has put in place the mechanisms necessary to make this product available for download on the web, hence multiplying the market reach for the product many folds. Initial market response, though very early, are encouraging.

• Customer Wins
  
  Cranes has earned another prestigious entry into the Indian car manufacturing segment, through one of the largest people's car makers. New generation cars need simulation and testing on a variety of conditions and the products offered by Cranes through some strategic alliances provide a virtual proving ground for these conditions electronically.
  
  One of the pioneers for electronic signal processing has brought products offered through some of Cranes' strategic alliances for calibrations and standards accreditation of their instrumentation controls. This is a significant testimony of the growing importance and acceptance of our offerings in the customer's value added processes.

• Acquisitions
  
  During the quarter, the Company concluded the following acquisitions and the financials are consolidated

  • Caravel Info Systems
    
    Caravel Info Systems (CIS) provides consulting services in the areas of complete embedded product development, hardware design, embedded software design, intranet based applications development, GroupWare application development and customization services. CIS is a complete embedded design services company providing a cost-effective resource for organizations that need to develop technically complex products to stay ahead of competition.
    
    Caravel has a suite of IPs that can help reverse engineer outdated designs and reengineer them to better performance standards. These IPs can help in quick recalibrating the designs and integrate quite a lot of logic on to a common platform. Integrated product design, test simulation, quick prototyping, and performance calibrations are the key to re engineering and upgrading existing designs, and this is Caravel's forte. Cranes is currently working on opportunities to build software products with wrap around solutions that can be embedded into existing hardware products of OEMs in various verticals and Caravel provides an avenue to build this expertise.

  • Proland Software
    
    At a strategic level, this acquisition fits into Cranes’ intent to seek significant technology leadership in every element of the analytics value chain.
    
    Cranes’ executes projects that transform data into intelligent business information that support organization decision flows. The entire process of data acquisition, analysis and reporting will result in creation of a comprehensive enterprise analytics platform architecture that warrants high-end data security and encryption systems. Cranes proposes to integrate Proland’s security IP and wrap around thereon capabilities within its analytics model and provide end-to-end secure enterprise analytics and engineering simulation systems and products. The Proland expertise will help the company develop the underlying data security protocols that are essential to developing an enterprise level analytics platform.

• Launches:
  
  Scientific Computing & Instrumentation (SCI): Graphics Readers' Choice Award for SigmaPlot
  SigmaPlot has been awarded the Graphics Readers' Choice Award by the Scientific Computing & Instrumentation (SCI) Journal, US. SigmaPlot was selected as one of the winners in their Readers' Choice Awards program on the basis of readers' response.
  
  According to the SCI Review: " The SigmaPlot scientific graphing and data analysis software package provides researchers with features to analyze data and create exact graphs that present research results for presentation, publication or the Web. It contains a range of graphing options, such as 3D Mesh Plots with Contour Projections, that allow users to customize each detail of their graphs to communicate elements of their research. Additional features include the Submission Assistant, which stores an extensible list of publication specifications for 22 leading journals."

About Cranes Software International Ltd. (CSIL):

Cranes Software International Limited is a company that provides Enterprise Statistical Analytics and Engineering Simulation Software Products and Solutions across the globe. The Company's business interests span Products, Productised Solutions, Services and R & D in future technologies.

Today, Cranes Software has its presence in 39 countries across the world and has a 350,000 strong global user base. Cranes Software offers a range of proprietary products - SYSTAT, SigmaPlot, SigmaStat, SigmaScan, TableCurve 2D, TableCurve 3D, PeakFit, NISA, XID, XIP, Survey ASYST, iCapella, InventX and world-renowned products from reputed principals such as Engineering Technology Associates, Livermore Software Technology Corporation, The Mathworks, Texas Instruments and IBM.

For further information please visit www.cranessoftware.com

Certain statements in this release concerning our growth prospects are forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties, including government actions; local political or economic developments; technological risks; risks inherent in the Company's growth strategy; dependence on certain clients; dependence on availability of technical consultants and other factors that could cause our actual results to differ materially from those contemplated by the relevant forward looking statements. The Company undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.