Sify Technologies Ltd (SIFY) 2005 Q1 法說會逐字稿

My name is Carmen, and I will be your conference facilitator. At this time I would like to welcome everyone to the Sify Limited first-quarter earnings call ended June 30, 2005. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer period. (OPERATOR INSTRUCTIONS) I would now like to introduce Ms. Shay, (ph) Investor Relations at Sify Limited. Please go ahead, ma'am.

I would like to extend a warm welcome to all our participants today on behalf of Sify. I am joined on the call this morning by R. Ramaraj, Chief Executive Officer; Anil Ahuja, Chief Financial Officer; Shrikant Joshi, President of Access Media; and Rustom Irani, Chief Technology Officer of Sify Limited. Mr. George Zacharias, Chief Operating Officer is away for a few days and unable to join us on this call.

Following our comments on the results there will be an opportunity for questions. If you do not have a copy of our press release, please call the Anne McBride Company at 212-983-1702 extension 218, and we will have one sent to you. Alternatively, you may obtain the copy of the release at the investor information section on the Company's corporate website at www.sifycorp.com. A replay of today's call may be accessed by dialing in on the numbers provided in the press release or by accessing the webcast in the investor information section of the Sify website.

Some of the financial measures referred to during this call and in the first-quarter earnings release may include non-GAAP measures. A presentation of the most directly comparable financial measures calculated and presented in accordance with GAAP, and a reconciliation of such non-GAAP measures of the differences between such non-GAAP measures and the comparable financial measures calculated and presented in accordance with GAAP are also available on Sify's website.

Before we continue I would like to point out that certain statements contained in the earnings release and on this call are forward-looking statements rather than historical facts, that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements the Company seeks protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include a variety of factors, including competitive developments and risk factors listed from time to time in the Company's SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements but are not intended to represent a complete list of all risks and uncertainties inherent to the Company's business.

With that I would now like to introduce Mr. R. Ramaraj, CEO of Sify.

Thank you, Ingrid. I would like to welcome everyone on the call once again. And thank you for joining us today. First, let me touch upon the highlights of the first quarter, the quarter that ended 30th of June and then provide more details about the quarter later on. We will respond to any questions you may have at the end.

Our financial results this quarter underscore the growth record of our business. The revenues in the first quarter were 31% higher than revenues in the corresponding quarter last year. We continue to grow, generate cash profits and reduce net losses. In (indiscernible) we have been investing in bandwidth and capital expenditures to maximize growth opportunities in the fast-growing Indian market.

As you may have noticed in the previous years our first-quarter revenues are usually lower than preceding quarters. The last quarter of the preceding year ending March 31st primarily due to price revisions for corporate connectivity services. I am happy to note that this year however we were able to grow our revenues in the first quarter to $23.5 million, practically the same revenues as the preceding quarter. Our cash profits in terms of adjusted EBITDA for the quarter were $0.34 million. Our operations have now generated cash profits seven quarters in a row.

Net loss came down from 2.47 million in the fourth quarter of the last fiscal to 2.26 million in the first quarter this year, a reduction of 12% during the quarter. A number of actions taken in the first quarter were designed to enhance our delivery capabilities and strengthen our competitiveness in the future. We incurred a CapEx of $4 million during the quarter on network capacity upgrades for delivery of broadband services and to meet increasing demand from corporate connectivity services.

One of the challenges we face is in retailing experienced talent in a growing economy with multiple opportunities. This is reflected in the first quarter in terms of a rise in salary levels and industry average of 17% or so. We have also invested in space and equipment in a number of cities to facilitate our growth into new areas within India. Our operations are supported by a strong balance sheet. We ended the quarter with a cash on hand of over 30 million US$.

During the quarter we also entered into (indiscernible) alliances to considerably strengthen our competitive advantage, and I would like to share these with you. To address the need of large customers in the public sector, government banking and corporate segments we entered into an alliance with Power Grid Corporation of India Ltd. which has an extensive optic fiber backbone across the country. Sify and Power Grid will jointly interest large customers with a combination of our expertise and Power Grid's capacities and reach for a very strong position in the market for IT VPNs.

This is a unique arrangement a first in public private partnerships; it will help develop the market for sophisticated corporate connectivity services in the country. Veterans of fab (indiscernible) also into market in the country, we signed an MOU with Novatel, a large provider of equipment and solutions to the call center industry, with whom Sify will be providing MPLS backbone connectivity for voice traffic.

To address the Sarbanes-Oxley compliance needs in the United States Sify has started working with a major accounting firm in the U.S. SifyAssure also tied up with new partners in the Middle East to jointly address the customers' security and networking consulting needs. These strategic moves have focused us to address fast growing markets and customer segments more effectively and will benefit us in the future.

There were also significant milestones that we achieved in consumer services this quarter. We now cover over 1.2 million homes across the country through our cable TV operator franchisee network for high-speed network access. More than 1 million subscribers access the Internet from our iWays during this quarter. This is the first time that we have reached the 1 million mark.

Our consumer Portal, Sify.com, leads in language versions with content available in five Indian languages in addition to English. Sify has taken the lead in developing multilingual versions as we believe availability of content and languages is crucial to getting many more Indians to access the Internet.

Wireless Internet is another fast-growing opportunity with 60 million mobile users in the country and well over 1 million new connections being added in every month. Sify.com's 4545 (ph) service for wireless Internet content such as news, sport updates, entertainment and ring tones for mobile users, we've seen steady growth. We also launched the SifyMail on mobile service; while SifyMail subscribers to access the mail over their mobile phones using the 4545 service.

To address the need for suitable and attractive content for broadband access that has so far not been available, Sify launched SifyMax.in, a complete broadband content site that gives Internet users access to an enormous range of media and audio content. The site is seeing growing use by our own as well as other broadband users in the country.

Overall we believe this quarter is a good start to the year and sets us up for further progress this fiscal year. We intend to continue to grow the business aggressively, to move beyond operating profits. I should now briefly cover the highlights of operations for corporate services during the quarter. Corporate services accounted for about 54% of our revenues during the quarter. They had some significant new wins and repeat business from customers in connectivity services. New wins included ING Vysya Bank, Nokia, Pyramid Megastore and Binitia (ph) Biotech, amongst others.

Significant repeat orders were received from many existing customers including GE, Hutch,* HDFC Standard Life, Sapient and Supti (ph). In application services we won prestigious orders from LIC Housing Finance, Loyola Institute for Business Administration for messaging platforms, family health plan for document management applications and an online registration engine for a leading business school Xulare (ph). We also provided online examination support for business (ph) and life and ICICI Prudential examination leveraging the distribution platform available through our iWays (indiscernible).

The hosting division of the Company acquired a number of new customers during the quarter, including LIC Housing Finance, ESP Merrill Lynch, (indiscernible) and Mahindra Holidays. If we (indiscernible) India Sify (indiscernible) secure practice, once several information assurance and compliance assignments in the last quarter. Notable ones were ICIC at Prudential, PepsiCo and Telisma for security ordered and policy implementation, as well as (indiscernible) Disys and easy process for BS7799 consulting and precompliance exercise.

Forum, Sify's supply chain management solution acquired new customers including TotalFina in India and foot product made in Bunge, India. Forum also commenced a unique short-term supply chain consulting assignment for GM for benchmarking supply chain process efficiencies. There are now more than 2000 locations across India where Forum has been applied.

I shall now hand over to Shrikant Joshi for an overview of consumer services during the quarter.

Thank you, Ram. Our consumer solutions for (indiscernible) 8% of our revenues during the quarter. Our high-speed Internet home access subscribers now exceed 104,000. The service has expanded to 15 cities during the quarter. As mentioned earlier, our current base of cable television operators across the country to whom we deliver high-speed access services totals approximately 1.2 million homes across the country. This number will grow as we add on more operators (indiscernible).

We issued a program of the (indiscernible) of the cable television operators to improve the quality of service available to customers. They have also been given extensive training and a better understanding of the technical issues and to improve service handling and management. The iWays services increased to 2700 across 104 cities and towns. Most iWays are now broadband enabled at speeds of 256 k (indiscernible) per visit. Many iWays are now enabled for video streaming, downloads and speedier (indiscernible) check on multiple windows. As mentioned earlier, more than one million subscribers access the Internet across India from iWays during the quarter.

Our Internet telephony service grew by about 10% over the previous quarter almost 30 million minutes. Apart from iWays service has now been made available to 600 Internet telephony (indiscernible). Revenues from the value added services such as wireless Internet content grew by 100% (ph) for the second consecutive quarter. Advertising wins included (indiscernible) Accenture and IDS (indiscernible). Sify Max was launched with more than 17,000 hours of audio and video content. The video content includes news, movies, sports, astrology and others. And the audio content is offered through catalog music and multiple web (indiscernible)channels. Sify Max had exclusive broadband rights for the Wimbledon 2005 championships and is currently the official website for Sony Entertainment Channel new reality show, Fame Gurukul. It is a program in the genre of American idol and reducing the (indiscernible) The site has been well-received by broadband users who have started using (indiscernible) content available on the site.

(indiscernible) included the hosting of (indiscernible) events of the (indiscernible) secondary education (indiscernible). Sify offered the most stable (indiscernible) services online and with the requirement of multiple websites was so that students now per Sify to be able to access (indiscernible) successfully. 23rd offered by.com personal finance website and channel continue new listings in the quarter. Present recent initiative focus on cities focus on summer delight of the latest Harry Potter book released on Saturday last. Sify Mall team worked overnight to ensure that the participants who had preordered the book received their copy, hand delivered to their homes on Saturday morning in the (indiscernible) in India. Sify Mall was the only online mall to ensure the standard distribution of the much awaited book to participant's home on the morning of the release.

I will now hand over to Mr. Irami for an overview of the technology initiatives in the quarter.

I'm happy to inform you that our technology software development units were appraised at maturity level three of the capability maturity model integration, the CMI more than 1.1. This will translate into higher levels of customer satisfaction for both corporate and retail customers due to our structured quality software development technology. In the quarter we expanded our network reach to 126 cities and towns from the previous 99 on the back of expansion in the corporate services business. Within major cities we invested in connecting most of our base stations for wireless broadband connectivity through a fiber ring to ensure redundancy in the last mile, as well as to add much capacity for backhaul of our data. This will further increase a lasting reliability for the mission critical operations of our corporate customers, as well.

We have also been working on the last mile infrastructure of the cable television operators who provision our broadband access to home by auditing for points of failure and systematically eliminating them. We are also ensuring the last mile infrastructure of new operators being signed on are reliable by executing it for them.

Ram mentioned that alliance with the Power Grid Corporation of India Ltd., or Power Grid which has a network of over 20,000 route kilometers of fiber cable across the country, across India. We will terminate Power Grid's fiber into many of our network centers which helps us to considerably increase bandwidth capacity in the backbone as well as our reach. This will greatly enhance Sify's capacity to grow in bandwidth in the gigabit range to more corporate and consumer services. I will handover now to Ram who will share the overall market outlook with you.

Thank you, Rustom. The outlook for the Indian economy continues to be positive with an expectation of 7% growth in GDP. Economic reforms will continue to be regulated and liberalize the economy to access (indiscernible) growth further. The emphasis on increasing investments in India and the plans for including infrastructure on a large-scale across the country all augers well for growth.

Last year we saw an upswing in IT spends by companies in India according to a survey by IDC. There was 11% increase in corporate IT spent over 2003, 2004 with banking, Telecom and insurance leading the rise in IT spends during the year. The survey also revealed a marked change in the spending pattern compared to previous years.

Growth in packaged software and services were the most with services moving from a 17% share to a 22% share in 2004, 2005. The IDC study showed that Indian corporations are no longer looking at IT investments as basic infrastructure but are aligning their IT strategies with their business strategies. IT services such as network consulting and integration, software support and systems integration will grow. The study shows mobility, convergence and IT infrastructure management will drive the growth.

We believe this strength will continue with India emerging as the (indiscernible) growing IT and IT services market in the Asia-Pacific region in 2005. Ascom, the FX body for the IT industry in India estimates that the domestic software and services market grew 23% to $4.8 billion in 2004, over the previous year's $3.9 billion.

Software and services sector market was worth $4,2 billion whereas the domestic IT enabled service and DPO markets stood at 0.6 billion. The growth in domestic IT spending has been triggered off by a spread of e-commerce initiatives by both the central and state governments. These developments bode well for the services that we offer.

I would now like to update you on the department of telecommunications' proposed license fee on ISPs providing IP VPN services. We had briefed you about the legal challenge of the license by the Internet Service Providers Association of India in the Telecom dispute settlement and arbitration tribunal during the last conference call. The tribunal has since asked the Department of Telecommunications to refer the (indiscernible) for imports from the regulator, the Telecom regulator part of India and for the two (ph) consultative procedure to be followed. However, the tribunal has not questioned the need for a license but simply asked that due process be followed on (indiscernible) on the license fee. The department has since referred the matter to the regulator who in turn has issued a consultation paper and sought comments from the various stakeholders in this matter.

Industry is currently in the process of responding to the consultation paper which will be open, which will be followed by an open house meeting with the regulator by the various stakeholders. The regulator will then forward the recommendation to the department.

Lastly I would like to share with you that consistent with NASDAQ regulations for corporate governance we have added three independent directors, including a financial expert to our Board of Directors and its Committee. The new directors are eminent professionals with significant experience and expertise in the areas of corporate management, interaction with governments and customers both internationally and in India.

I will summarize the results for the first quarter by saying that the growth in our business, customer orders and new initiatives demonstrate that we are well positioned in each of our markets. The markets are growing, and we are working to capitalize on their growth with investments into our network, alliances, new applications, training and marketing in order to establish a strong business and brand even as we move towards sustained profitability. I will now turn the call over to the operator to open the line for questions.

(OPERATOR INSTRUCTIONS) George Mihalos with Wachovia Securities.

You have mentioned the salary increases playing a role in increasing SG&A costs this quarter. Do you see that continuing throughout the course of the year? Is this sort of a onetime boost and that is now factored in?

It is a onetime boost that has been effective in (indiscernible).

And how many employees did you hire this quarter? Was it around that 100 mark?

About 150.

115?

150.

150, okay. And with relation to the S-Ox compliance issues were there any -- was there any cost for compliance that you incurred in the first quarter? Is that something we should be looking at for the remainder of the year?

No, for foreign issuers those dates have been pushed back by a year. So while we are getting ready for it, those costs are not yet in this quarter.

Can you sort of quantify what you expect them to be?

It is a bit early but I would think somewhere in the region of about $100,000 or so.

Okay. And with the bandwidth capacity have you seen the tariff reductions that we have been hearing so much about or is that something that still needs to work its way through? And how much additional capacity do you see yourselves buying throughout the course of the year, or do you think you are essentially where you need to be?

We are not where we need to be because we buy on the back or in anticipation of business that comes both from enterprise and consumer. Our bandwidth has gone up over the last four quarters almost 2.5 times. The price drop has started taking place in the domestic side of the network, and that drop has just started. The TRAI, our regulator had recommended and that has started getting accepted in this domestic side. On the international side even though they recommended a drop of 70% that has been challenged by one of the operators and is now in the Supreme Court. We expect that that would take maybe another quarter or so to get results.

Another quarter or so. And how much have the bandwidth tariffs declined internationally thus far for this year?

This is coming because, as you know, we are in both the enterprise and the consumer side of the business. We are therefore one of the largest buyers of bandwidth. Thanks to the negotiation that Rustom Irani and his team do, we have been able to get better prices than what the TRAI has been recommending up to date. The price that has dropped so far compared to previous is 6% from previous quarter to this quarter approximately.

And with regard to the international business, how often do you guys sort of compete or bump heads with the larger IT outsources when it comes to the infrastructure management side of the business?

We are in a couple of our customers are in the Fortune 500 list. And in that order we did come across some of the large providers, especially the U.S. large providers. However, what we are doing are working with partners and looking at the smaller enterprises where we are not crossing swords (ph) yet with the large providers like IBM global services and not crossing swords there.

Fair enough. And can you give us the mix in your portal business between advertising revenue and e-commerce; that works out to and how the growth within those two areas is progressing?

Actually the maximum growth we have had is in the value added mobile or wireless Internet where our revenues have actually gone up from about 9% in the past to about 28%. So that has been the maximum increase. The advertising revenue accounts for about 65%, and e-commerce for about 7%.

Would you say the e-commerce is growing faster presently than the advertising? Is that a fair statement?

No, while it is growing, advertising is also growing; at the moment advertising is growing faster in terms of revenue.

Okay.

What we are doing, George, is that we are creating a platform for getting more and more merchants to come online. Part of the challenge is that the number of credit cards and the usage of credit cards. The advantage that we have had is that we incurred cash on delivery sometimes pick up from the iWays. Because of this the e-commerce has been growing in absolute terms, but relative in that business the faster growing one is the mobile Internet side which is 28% advertising, is still growing fast at 65% of the revenue and e-commerce is 7%.

Understood. Okay. And last question. Can you speak a little bit as to the visibility you have amongst your different operating segments?

Future?

Yes.

I can't. We do not give a forecast yet because of the manner in which the market is still. So we do not give a prediction yet because this is a fast changing and devolving market, so (indiscernible) to a certain degree of maturity proven kind of recommends that we wait maybe another few quarters before we take that courage.

Okay. Thank you.

(OPERATOR INSTRUCTIONS) (indiscernible) from Alkeon Capital.

I was wondering from advertising revenue can you give us a little more granularity how much was international advertisers versus domestic advertisers? And if there was a particular industry that you are seeing screen (ph) from.

Most of our advertisers in international have been financial services. And financial is primarily (indiscernible). And the number -- the largest is financial followed by travel, and then are classifieds. That is broadly what we have been having. Just to put in perspective while the total of interactive business is significant in our strategy, the actual revenues that we have from the portal business is under 4% of our total revenues for the Company. Half our revenues in advertising in that segment comes from international and half comes from domestic.

(indiscernible) Patel.

I had a question on the portal strategy. You have spent $1.5 million on orders so far but it is lagging behind India times, as well as (indiscernible) India. Where do you see your portals, how do you see your portal comparing competing with Yahoo as well as India (indiscernible)?

The portal strategy we had two ways in which we have approached it. One, as you have rightly pointed out, we did do an acquisition five years ago in order to get it started in that business competing against the yahoos of the world. That got us into that business with a leap and a big bang. What we have done is that we have always followed a very integrated approach in the business. What we have tried to do is make sure that in our 2700 plus iWays where we have about one million visitors that the default page is usually the Sify properties. So also at home and we have gone ahead with the bandwidth with SifyMax which is unique. It is the first of its kind here in India providing broadband content. Third is that we have been focusing on the wireless side, and in that business in the last quarter has actually doubled, and that is another area of focus.

The brand, thanks to the examinations and some of the things that we have been doing including gigs (ph) has helped again create a recall in terms of amongst the youth. Especially with exam results and the stability. Therefore we have been able to get traction at the youngsters. So these were some of the steps that we have taken. The reason we are in the portal business is that we think that that is one way we are going to get more and more people to get onto the Net and stay longer. It is critical. But fortunately the way we have planned or strategized our business, it is one more revenue which is integral to our business but at the moment about 4%. It has been recognized as a super brand amongst the portals. It has a high degree of recall. No doubt it is (indiscernible) India time and Sify in order but it is up there. And from an advertising revenue point we are comparable to Reedis (ph) advertising.

Follow-up question of that. Reedis (ph) market cap just primarily based on its portal away from modern cities and don't you think Sify should focus more on its portal improving the quality because portals as you would be aware are, you know, not be aware that (indiscernible) yet they lag way behind Reedis, and the quality of the portal is really bad. So don't you think Sify should focus more on its portal and rather than spending a lot of money on other businesses?

You're right that the market cap of Reedis is enviable. However, one of the challenges that we have had -- all right, well let me first talk. Our revenues as a company is many times that of Reedis'. The challenge has been that we do not have a direct comparator for investors, not knowledgeable investors like yourself, but other investors who have a direct competitor. So when they see a pure portal they are able to slot it against a SeeNOW (ph) or a Yahoo or a Google but are not able to take somebody like ours who are about eight to ten times bigger in terms of revenue but who are in multiple businesses, who are a serious player both in the enterprise side as well as in the consumer side.

When we started this business there were more than 400 ISPs in this country. Very clearly we are number one against the ISPs, and that is well-known. We have close to 50% market share in the enterprise side. Where our challenge is to maybe go out and talk more about the different pieces of our business so that other investors can start appreciating the kind of depth and the stability we have in our business. We have fortunately now have increased research coverage and I think that will also help in better understanding. Our portal feedback that we have had is that it is well accepted. But I take your feedback and will look at this to see the areas for improvement.

And question on broadband strategy. A simple search on Google for Sify broadband throws up tons and tons of websites, complaining poor quality of the broadband service, how that service is not provided properly through a CTO that you work with that (indiscernible) has described as you put a data cap under. (indiscernible) remember you specified to be unlimited. What do you have to say for all that?

I think part of what we are doing here is actually fact breaking work. The challenge is that unlike in the United States the last mile has not been unwandered. And there was a bit of reluctance in the regulator to do so because of the U.S. experience. And therefore unbundling was for a variety of reasons is a bad phrase or a bad word amongst the regulators and the licenser, which is very unfortunate. The incumbant is trying to rollout the service (indiscernible) and so far have not rolled out many, in total some 125 and 30,000 actually rolled out. What we have tried to do is look at another very extensive way to get to the homes. Cable operators have access to about 16 million homes which is about similar to what the telephone operators have which is about 45 to 50 million homes. We are actually therefore working with a very fragmented cable industry.

Unlike again the United States, the cable industry here has over 40,000 operators or so, extremely fragmented, unorganized. But this gives us an advantage that we work with them through the last mile. One of the things that was worth explaining, or talking about some of the initiatives he did, is to make sure that we ordered the network for these cable operators. We are prescribing how this last mile has to be. We are actually making sure that a lot of this is relayed with the kind of switches and Internet cable through the prescription that he has. Rustom has actually therefore hired 300 people on contract to go out there and make sure some of these things get done in a quality manner. In a prescribed manner.

Because of this we have actually been adding subscribers. We have in many ways I would think that there are a number of people who have been happy, but I agree with you that there are quite a few because of the loss (indiscernible) the rains in Bombay have for example impacted some of the cable operators who did not change the network to our specifications. We are working with them and making sure that some of these things get done. We think that this is going to take at least 2 to 3 quarters before we get more traction. We are adding more and more customers. The number of calls that are coming into our customer support is falling. However, not as quickly as we would like it to be, which is why many of these initiatives. Part of the frustration is that there is a high expectation of Sify the brand, compared to a cable operator, it is a challenge therefore for us to very quickly meet up with that expectation.

Dennis Farma (ph) with AMR Capital.

I just want to ask one question regarding the future guidance. You said like Indian market is growing and everything is growing; how come you can't predict your company's future?

You know, the challenge is to be able to come up with a number in the plus/minus half percent kind of range. We are therefore very confident of the future of the business. We have an internal budget that is what we are tracking. If you look historically over the last five years we have grown over 40% year on year. However, a bit Columbus-like we are discovering the part as we go forward, we are the leaders. There is no role model, and therefore to predict the exact number in the future we do not want to do that till there is a little more maturity in the market.

When do you think this company is going to be profitable?

We have been on a cash basis. This is the seventh quarter where we have been profitable. What we are doing is on a cash level. What we are doing finally is, as you rightly said as the Indian market is growing, what we are doing finally is we do not want to miss out on that growth opportunity. Therefore we are also investing to ensure our leadership. We are close to 50% in the enterprise side. We are over 20% in the broadband in the consumer side. We are way ahead of the nearest competitor when we look at the iWays side. We are at 2700 and the next one may be somewhere under 300. Therefore there is leadership and therefore we are targeted both for our market share, as well as for some of our processes and our people. We are looking therefore to invest to one protect, two to grow. And I think that is where you are seeing your company actually making these investments to make sure that we protect the market share as well as keep the growth momentum going.

George Mihalos of Gilford Securities.

One final question. Can you talk a little bit about the rollout of your online gaming initiative?

Yes, George. Very quickly we have about 800 or so locations that have ready got readied for launch of online games. Most PCs in those locations are now ready in terms of our iWays. Plus as you know more than 150 of those game drums (ph) specialized game locations are now also signed up in the 100 plus are operational. That is on the infrastructure side where we now have therefore close to 1000 locations, where people can go to play games besides the high-speed connectivity that we provide at home for about 100,000 plus people. So the infrastructure is ready, what we have done is that we have taken this game called 8 3 from Korea, had that customized a bit to India so that it does not attract the wrong attention. And also looked at the language context and that game is at the moment on a closed beta. I think through this current quarter, the July to September quarter, we should complete the closed beta and be able to open it for open beta towards Christmas.

Okay. Thank you.

At this time there are no further questions. Mr. Ramaraj do you have any closing remarks?

Yes, I would like to thank everybody for being on this call and look forward to speaking to you again next quarter. Thank you all for joining us.

Thank you. This concludes today's Sify Limited first-quarter earnings call ended June 30, 2005. You may now disconnect.