Rediff.Com Reports Results for the Third Quarter Ended December

Mumbai, Maharashtra, India, one of the premier online providers of news, information,
communication, entertainment and shopping services to Indians worldwide, today
announced results for its third quarter ended December 31, 2013. 
The Company reported overall revenues for the 2013 third fiscal quarter of $4.17
million, a 5% increase in US dollar terms and 20% increase in Indian Rupee terms
compared to the same period last year. Revenues were positively impacted by
growth in the Company's India Online operations, which increased 7% in US dollar
terms (22% in Rupee terms) to $3.42 million over the corresponding quarter last
fiscal year.  Revenues from Rediff's U.S. Publishing business declined by
approximately $0.01 million or 3% for the comparable fiscal third quarter
Gross profit margins for the three months ended December 31, 2013 were 39% as
compared to 38% in the comparable period last year.  Operating expenses were
$3.12 million in the fiscal 2013 third quarter, a decline of $0.4 million as
compared to $3.52 million for the three months ended December 31, 2012. 
We are fully embracing the move of online users from PC to Mobile and have now
strong mobile phone offerings for Online Shopping Marketplace, Enterprise Email
and News. We are also leading the world-wide efforts in data journalism and you
can see some examples of our work using Bayesian techniques on our homepage
under the Rediff Labs link. 
“Despite the challenging economic environment and continued competitive
pressures, we have been successful in growing our business.  Our gross margins
are holding firm and we continue to implement prudent cost control measures,
while strategically investing in our business. Our efforts towards introducing
content marketing and native ads, with an objective of improving our online
advertising offering is showing early signs of success and both our Enterprise
Class Email business and Online TV Marketplace initiatives continue to gain
traction,” said Ajit Balakrishnan, Chairman and Chief Executive Officer of 
The Company's Operating EBITDA loss declined 25% to $1.50 million for the
quarter ended December 31, 2013; the net loss was 37% lower at $1.90 million
while the net loss per ADS of $0.069 for the same period was lower to the same
extent by $0.04, compared to the same quarter last year.  
Mr. Balakrishnan added, “Our goal remains to accelerate our growth and also to
bring Rediff to profitability and we are doing all that we can to achieve this
near-term.  We see growth opportunities in all the markets we address including
Online Advertising, Online TV Marketplace, Enterprise Email and Marketplace for
Online Shopping. The challenge is to accelerate growth and achieve profitability
Further details of's results for the second fiscal quarter ended
December 31, 2013 are appended in tabular form to this press release.  A script
of the earnings results conference call held on January 23, 2014 will also be
made available on Rediff's Investor Information website at 
About (NASDAQ: REDF) is one of the premier worldwide online providers of
news, information, communication, entertainment and shopping services to Indians
worldwide. Founded in 1996, 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 of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and reflect our current
expectations. Forward-looking statements are identified by certain words or
phrases such as "may", "will", "aim", "will likely result", "believe", "expect",
"will continue", "anticipate", "estimate", "intend", "plan", "contemplate",
"seek to", "future", "objective", "goal", "project", "should", "will pursue" and
similar expressions or variations or negatives of such expressions. 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 economies worldwide and in the sectors in which
our clients are based, the slowdown in Internet and IT sectors worldwide,
competition, the success of our past and future acquisitions, attracting,
recruiting and retaining highly skilled employees, technology, acceptance of new
products and services, the development of broadband Internet and 3G networks in
India, legal and regulatory policies, managing risks associated with customer
products and the widespread acceptance of the Internet as well as other risks
detailed in the annual report on Form 20-F and other reports filed by
India Limited with the U.S. Securities and Exchange Commission. India
Limited and its subsidiaries may, from time to time, make additional written and
oral forward-looking statements, including statements contained in the Company's
filings with the U.S. Securities and Exchange Commission and our reports to
shareholders. India Limited does not undertake to update any
forward-looking statement that may be made from time to time by or on behalf of
the Company. 
(All figures are in US$ millions, unless otherwise indicated below) 
Quarter ended December 31 
India Online3.423.20
US Publishing0.750.77
Total Revenues4.173.97
Cost of Revenues *(2.55)(2.45)
Gross Margin1.621.52
Gross Margin %39%38%
Operating Expenses *(3.12)(3.52)
Operating EBITDA(1.50)(2.00)
Depreciation / Amortization(0.68)(0.93)
Interest Income0.340.51
Other Income (refer note below)-1.41
Goodwill impairment charge-(2.00)
Foreign Exchange gain (loss)(0.06)0.01
Net loss before income taxes(1.90)(3.00)
Net loss(1.90)(3.00)
Net loss per ADS (in US dollars), basic(0.069)(0.109)
Net loss per ADS (in US dollars), diluted(0.069)(0.109)
Weighted average ADSs outstanding (in millions)27.5927.59
* Stock-Based Compensation included in:  
Cost of Revenues-0.01
Operating Expenses0.110.15 
Each ADS represents one half of an equity share.
The above numbers are subject to audit. An audit could result in adjustments
which would result in the audited numbers varying from the numbers set forth
The company established an ESOP trust for the benefit of employees, which has
acquired 1,015,000 shares (equivalent to 2,030,000 ADSs). These shares are
treated as treasury stock and therefore are excluded from the EPS calculations.
During the quarter ended December 31, 2012 the company exited from one of its
equity investments, which accounted for a one time gain from the sale of the
investment of US$ 1.4 million included under the heading Other Income. 
Non-GAAP Measures Note 
Operating EBITDA and non-GAAP operating expenses 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 compared to
historic results and our peer group. The reconciliation between Operating EBITDA
and net loss, the GAAP measure, is as follows: 
(All figures are in US$ millions) 
Quarter ended December 31
Operating EBITDA (Non-GAAP)(1.50)(2.00)
Depreciation / Amortization(0.68)(0.93)
Interest Income0.340.51
Other income-1.41
Goodwill impairment charge-(2.00)
Foreign Exchange gain (loss)(0.06)0.01
Net loss before income taxes(1.90)(3.00)
Net loss (GAAP)(1.90)(3.00) 
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 non-GAAP operating
expenses measure to compute our Operating EBITDA. A reconciliation of GAAP
operating expenses to non-GAAP operating expenses is as follows: 
(All figures are in US$ millions) 
Quarter ended December 31 
Operating Expenses (GAAP)3.864.44
Foreign Exchange gain (loss)(0.06)0.01
Operating Expenses (Non-GAAP)3.123.52 
Media Contact Details 
Mandar Narvekar ,  Investor Relations and Corporate Affairs Contact , India Ltd. ,  +91(22)61820000 , 
Glenn Wiener ,  GW Communications (U.S.A.) ,  212.786.6011 , 
Jay Morakis ,  GW Communications (U.S.A.) ,  212.786.6037 , 
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-0- Jan/23/2014 12:52 GMT
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