Rediff.Com reports results for Q2 ended September 30, 2006

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Majority of the Company's Cash balances are held in deposits. Some of these deposits are held in US Dollar denominated bank accounts. These deposits, including the deposits in US Dollar denominated bank accounts, contributed to an increase in interest income to US$0.91 million during the fiscal quarter ended September 30, 2006, compared to US$0.11 million during the same quarter last fiscal year.  There was also a foreign exchange loss of US$0.05 million during the same quarter arising from the conversion of US Dollar balances to the company's functional currency for financial reporting purposes ( i.e. the Indian Rupee), due to the strengthening of the Indian Rupee against the US Dollar.

  

Other Income

Other income for the quarter was US$0.11 million, arising from sale of equity shares in an external company. The cost of this investment was written off in the Company's books in a prior year.      

 

Net Income

Net Income for the quarter ended September 30, 2006 was US$1.50 million, or 5.14 cents per ADS, compared to a net income of US$0.31, or 1.19 cents per ADS, for the same quarter last fiscal year.

Total cash and cash equivalents and short term deposits with banks as of September 30, 2006 was approximately US$51.4 million.

 

Sourced From: Genesis Burson-Marsteller