BWI: Rediff.Com Reports Results for the 4th Quarter and Fiscal Year Ended March 31, 2009

Press release from Business Wire India
Source: Rediff.com India Ltd
Tuesday, May 26, 2009 05:35 PM IST (12:05 PM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
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Rediff.Com Reports Results for the 4th Quarter and Fiscal Year Ended March 31, 2009


Mumbai, Maharashtra, India, Tuesday, May 26, 2009 -- (Business Wire India) -- "The continuing economic slowdown in the travel, jobs, matrimonial, shopping, consumer finance and real estate sectors in India continued to affect online advertising revenues, in particular revenues from other online companies in these industries. These developments are reflected in our financial results for this quarter and fiscal year ended March 31, 2009, in lower revenues (and consequent lower gross margins). Our revenue numbers for the quarter were also adversely impacted by a 25% year on year average depreciation of the Indian Rupee vis-à-vis the US dollar" said Ajit Balakrishnan, Chairman and CEO, Rediff.com.

"The quarter and fiscal year end results also include a non-cash goodwill and intangible asset impairment charge of $6.9 million. This primarily relates to an impairment of goodwill arising from our acquisition of the print newspaper "India Abroad" in the United States in 2001. The charge does not impact our cash or liquidity position. At the end of the quarter and fiscal year ended March 31, 2009 our cash and cash equivalents stood at around $45.6 million. In Rupee terms, the figure was Rs. 2.3 billion, an increase of 2% compared to the beginning of the quarter."

There is a growing consumer resistance to intrusive advertising online, a user preference for simplicity in navigation, the increasing use of the social graph in discovering content and friends and the emergence of mobile phones as an internet access device. You will see our response to these consumer trends in our new international website at the address http://us.rediff.com.

These and other initiatives will likely require us to increase our investments in product development and brand building. As a result of this, we expect an increase in our operating expenses from current levels by an average of about $1.0 to 1.5 million per quarter over the next three to four quarters. We also expect to suffer some revenue loss in the short run from eliminating ads on our international website's home page. We believe we need to do this to improve user experience.

Further details of Rediff.com's results for the fourth quarter and fiscal year ended March 31, 2009 are appended in tabular form to this press release. A script of the earnings result conference call held on May 26, 2009 will also be made available on Rediff's Investor Information website at investor.rediff.com.

About Rediff.com

Rediff.com (NASDAQ: REDF) is one of the premier worldwide online providers of news, information, communication, entertainment and shopping services to Indians worldwide. Rediff.com provides a platform for Indians worldwide to connect with one another online. Founded in 1996, Rediff.com is headquartered in Mumbai, India with offices in New Delhi, India and New York, USA.

Safe Harbor

Except for historical information and discussions contained herein, statements included in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements may be identified by the use of forward-looking terminology such as "may," "will," "expect," "believe," "estimate," "project," "anticipate," "continue" or similar terms, variations of those terms or the negative of those terms. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected by these forward looking statements. These risks and uncertainties include but are not limited to the slowdown in the U.S. and Indian economies and in the sectors in which our clients are based, the slowdown in the Internet and IT sectors world-wide, competition, success of our past and future acquisitions, attracting, recruiting and retaining highly skilled employees, technology related risks, legal and regulatory policies, managing risks associated with customer products and the wide spread acceptance of the Internet. Readers should carefully review the risk factors and any other cautionary statements contained in Rediff's Annual Report on Form 20-F, as well as other risks detailed in other reports filed by Rediff.com India Limited with the U.S. Securities and Exchange Commission. Rediff.com India Limited and its subsidiaries may, from time to time, make additional written and oral forward-looking statements, including statements contained in its filings with the U.S. Securities and Exchange Commission and its reports to shareholders. Rediff.com India Limited does not undertake to update or revise any forward-looking statements that may be made from time to time by it or on its behalf, whether as a result of new information, future events or otherwise.

To view the press release with tables, please click on the link given below:

Press Release with Tables
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CONTACT DETAILS
Mandar Narvekar, Investor Relations and Corporate Affairs, Rediff.com India Ltd, +91 (22) 24449144 Extn. 138, investor@rediff.co.in

KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY

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