BWI: Rediff.Com Reports Results for the 3rd Quarter Ended December 31, 2009

Press release from Business Wire India
Source: Rediff.com (India) Ltd.
Wednesday, January 27, 2010 04:05 PM IST (10:35 AM 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 3rd Quarter Ended December 31, 2009


Mumbai, Maharashtra, India, Wednesday, January 27, 2010 -- (Business Wire India) -- Rediff.com's third quarter ended December 31, 2009 global revenue declined 11% compared to the same quarter previous year, however global revenue grew 13% on a quarter-to-quarter sequential basis. India revenues declined 11% for the third quarter ended December 31, 2009, compared to same quarter previous year however grew 18% quarter-to-quarter sequentially. Total registered users grew 14% to 85 million compared to the same quarter previous year.

"During this quarter we saw many advertisers in the financial services and web industries who had stayed on the sidelines for the previous few quarters return cautiously; this is reflected in an increase in our India Online Ad revenues by 21% sequentially," said Ajit Balakrishnan, Chairman and CEO, Rediff.com.

Our initiatives in the Social Media and Local Search areas continue to make progress.

As in the past few quarters, we propose to continue investing 1 to 1.5 million dollars per quarter in the next 2 -3 quarters to maintain the momentum in user growth. In doing this we hope to increase our user base and in turn revenues in the next few quarters.

Our cash balance of $48 million as of December 31, 2009 ($47 million same date last year) allows us to meet our liquidity needs and to execute on our product development and investment strategy.

Further details of Rediff.com's results for the third quarter ended December 31, 2009 are appended in tabular form to this press release. A script of the earnings result conference call held on January 27, 2010 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.

Notes

-- Each ADS represents one half of an equity share.

-- The above numbers are subject to audit and while no significant changes are anticipated, an audit could result in adjustments which would result in the audited numbers varying from the numbers set forth above.

Non-GAAP Measures Note

Operating EBITDA, non-GAAP operating expenses, impairments related to long lived assets are the non-GAAP measures in this press release. These measurements are not recognized under generally accepted accounting principles ("GAAP").

Operating EBITDA represents loss from operations prior to adjustments for depreciation/ amortization, non-recurring items and other income or expense and tax. However, other companies may calculate operating EBITDA differently. Operating EBITDA is not intended to represent cash flows as defined by generally accepted accounting principles and should not be considered as an indicator of cash flow from operations. We have included information concerning operating EBITDA in this press release because management and our board of directors use it as a measure of our performance. In addition, future investment and capital allocation decisions are based on operating EBITDA. Investors and industry analysts use operating EBITDA to measure the Company's performance to historic results and our peer group. The reconciliation between operating EBITDA and net loss, the GAAP measure, is as attached:

Non-GAAP operating expenses represent our operating expenses comprised of sales and marketing, product development and general and administrative expenses excluding depreciation and amortization. We have used the non-GAAP operating expense to compute our operating EBITDA. A reconciliation of the GAAP operating expense to non-GAAP operating expense is as attached:

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

Press Release with tables
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Press Release(6).doc


CONTACT DETAILS
Mandar Narvekar, Investor Relations and Corporate Affairs Contact, Rediff.com India Limited, +91 (22) 24449144 Extension: 138, investor@rediff.co.in

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

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