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CORRECTING and REPLACING Rediff.com Reports Results for the First Quarter Ended June 30, 2013

Tuesday, July 30, 2013

Mumbai, India, July 30, 2013

Rediff.com, one of the premier online providers of news, information, communication, entertainment and shopping services to Indians worldwide, today announced results for its first quarter ended June 30, 2013.

The Company reported overall revenues for the 2013 first fiscal quarter of $4.11 million, a 12% increase as compared to $3.67 million reported in the 2012 first fiscal quarter.

For the three months ended June 30, 2013, the Company reported revenues from India Online of $3.37 million, an increase of approximately 21% over the corresponding quarter last fiscal year. Total India revenue, which includes online advertising revenues of $2.19 million and fee-based revenues of $1.18 million, increased approximately 14% and 27%, respectively as compared to the three months ended June 30, 2012. Within India fee-based revenue, fees from Online Marketplace grew 78%. Offsetting this growth were lower sales from the U.S. Publishing business, as the Company reported sales of $0.74 million as compared to $0.88 million for the comparable 2013 and 2012 fiscal first quarters.

“Amidst continued challenging economic conditions and the pressures of a weakening Rupee vs. the U.S. dollar, we have maintained a strong market presence throughout India and have seen many of our newer initiatives grow; particularly our online and local TV advertising business, as well as in Online Marketplace and Enterprises Email,” said Ajit Balakrishnan, Chairman and Chief Executive Officer of Rediff.com.

Mr. Balakrishnan added “Our gross margins this quarter were 44%, compared to 32% for the same quarter last fiscal year. Additionally, in our Online Marketplace business, we successfully maintained a 12% positive product margin for the quarter and we continue to add vendors and SKU’s to our offering. I believe our concentrated efforts on conserving cash will take us a step closer towards profitability, especially as our margins increase and our top-line grows.”

The Company reported an Operating EBITDA loss of $1.47 million for the quarter ended June 30, 2013 as compared to an Operating EBITDA loss of $2.27 million in the comparable year-ago period.

Further details of Rediff.com’s results for the first fiscal quarter ended June 30, 2013 are appended in tabular form to this press release. A script of the earnings results conference call held on July 30, 2013 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. Founded in 1996, Rediff.com is headquartered in Mumbai, India with offices in New Delhi, India and New York, USA.

TABLES FOLLOW

STATEMENT OF OPERATIONS
QUARTER ENDED JUNE 30, 2013

(All figures are in US$ millions, unless otherwise indicated below)

 

Quarter ended June 30

 

2013

2012

Revenues

 

 

India Online

3.37

2.79

US Publishing

0.74

0.88

Total Revenues

4.11

3.67

Cost of Revenues *

(2.30)

(2.49)

Gross Margin

1.81

1.18

Gross Margin %

44%

32%

Operating Expenses *

(3.28)

(3.45)

Operating EBITDA

(1.47)

(2.27)

Depreciation / Amortization

(0.88)

(0.88)

Interest Income

0.35

0.52

Miscellaneous income

0.07

-

Foreign Exchange gain (loss)

0.06

0.01

Net loss  before income taxes

(1.87)

(2.62)

Tax

-

-

Net loss

(1.87)

(2.62)

Net loss per ADS (in US dollars), basic

(0.068)

(0.095)

Net loss per ADS (in US dollars), diluted

(0.068)

(0.095)

Weighted average ADSs outstanding (in millions)

27.59

27.59

* Stock-Based Compensation included in:

 

 

Cost of Revenues

0.01

0.01

Operating Expenses

0.07

0.13

Notes

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 above.
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.

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:

RECONCILIATION FROM OPERATING EBITDA TO NET INCOME
QUARTER ENDED JUNE 30, 2013

(All figures are in US$ millions)

 

Quarter ended June 30

 

2013

2012

Operating EBITDA (Non-GAAP)

(1.47)

(2.27)

Depreciation / Amortization

(0.88)

(0.88)

Interest Income

0.35

0.52

Miscellaneous income

0.07

-

Foreign Exchange gain (loss)

0.06

0.01

Net loss  before income taxes

(1.87)

(2.62)

Tax

-

-

Net loss (GAAP)

(1.87)

(2.62)

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:

RECONCILIATION FROM GAAP TO NON-GAAP OPERATING EXPENSES
QUARTER ENDED JUNE 30, 2013

(All figures are in US$ millions)

 

Quarter ended June 30

 

2013

2012

Operating Expenses (GAAP)

4.10

4.32

Depreciation/Amortization

(0.88)

(0.88)

Foreign Exchange gain (loss)

0.06

0.01

Operating Expenses (Non-GAAP)

3.28

3.45

For further details contact:

Mandar Narvekar

Rediff.com India Ltd.
Investor Relations and Corporate Affairs Contact
Tel.: +91-22-6182-0000

Email: investor@rediff.co.in

Glenn Wiener and Jay Morakis

GW Communications (U.S.A.)

Tel. 212.786.6011 / 212.786.6037

Email: gwiener@GWCco.com / jmorakis@GWCco.com

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