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Nucleus Software announces 30.53% Increase in FY 08 Revenue

April 28, 2008 | Press Release
New Delhi, India, April 27, 2008: Nucleus Software Exports Limited (NSE: NUCLEUS, BSE: 531209) today announced its results for the fourth quarter and year ended March 31, 2008. Consolidated revenue for the year ended March 31, 2008 increased by 30.53% to Rs. 288.72 crore in comparison to Rs. 221.19 crore in the previous year. Net Profit after Tax (PAT) increased by 11.95 % to Rs. 61.74 crore in comparison to Rs. 55.15 crore in the previous year.

Consolidated revenue for the quarter ending 31st March 2008, increased by 29.75 % to Rs 78.06 crore in comparison to Rs. 60.16 crore in the corresponding quarter of the previous year. Net Profit after Tax (PAT) increased by 14.84 % to Rs. 16.02 crore in comparison to Rs. 13.95 crore in the corresponding quarter of the previous year.

Highlights:

Financial Year Ended March 31, 2008

- Consolidated revenue at Rs. 288.72 crore from software products and software development services increased by 30.53% in comparison to Rs. 221.19 crore in the previous year.
- Product business revenue for the year at Rs. 197.41 crore increased by 64.84 % in comparison to Rs. 119.76 crore in the previous year.
- EBIDTA at Rs. 73.41 crore increased by 16.01% in comparison to Rs. 63.28 crore in the previous year.
- Net Profit After Tax (PAT) at Rs. 61.74 crore increased by 11.95 % in comparison to Rs. 55.15 crore in the previous year.
- Earning Per Share* for the year increased to Rs. 19.08 from Rs. 17.09 (on post bonus capital) in comparison to the previous year.
- Dividend recommended at 30 % (Rs. 3.00 per share), on post bonus capital against 35% (Rs. 3.50 per share) previous year.
- Investment in 17 acres of land in notified SEZ in Jaipur for future expansion

Quarter Ended March 31, 2008

- Consolidated revenue at Rs. 78.06 crore from software products and software development services increased by 29.75 % in comparison to Rs. 60.16 crore in the corresponding quarter of the previous year.

- Product business revenue for the quarter at Rs. 52.34 crore increased by 46.78% in comparison to Rs. 35.66 crore in the corresponding quarter of the previous year.

- EBIDTA at Rs. 20.89 crore increased by 21.74% in comparison to Rs. 17.16 crore in the corresponding quarter of the previous year

- Net Profit After Tax (PAT) at Rs. 16.02 crore increased by 14.84 % in comparison to Rs. 13.95 crore in the corresponding quarter of the previous year.

- Earning Per Share* for the quarter increased to Rs. 4.95 from Rs. 4.32 in comparison to the corresponding quarter of the previous year.

*Adjusted for issue of Bonus Shares in the ratio of 1:1 allotted on 8th August 2007 as per Accounting Standard 20 (AS 20) on Earnings per share.

Other Key Information

For the Financial Year Ended March 31, 2008
- Won orders for 64 product modules orders for FinnOne™ and Cash@WillTM Suite
- 24 new product wins from across the globe
- 70 product modules successfully implemented across the globe
- Global strength of employees as on March 31, 2008 is 1936
- FinnOne™ Suite ranked No 2, best selling retail lending software globally by IBS publishing, the UK based publication.

For Quarter Ended March 31, 2008
- Won orders for implementing 18 product modules
- 8 new product orders
- 2 orders for new product FinnOne™ Islamic version from the leading banks and financial institutions in the Middle East.
- Added 259 new employees taking the global strength of employees to1936.

Key Highlights

- Consolidated revenue growth of 30.53 % in FY 08 over FY 07
- Consolidated PAT growth of 11.95 % in FY 08 over FY 07 - Exponential growth in product business.
- ‘Cash and Bank Balances’ and ‘Current Investments’ at Rs. 94.13 crore on March 31, 2008
- 24 new product orders won for implementing 64 product modules orders for FinnOne™ and Cash@WillTMSuite
- FinnOne™ Suite ranked No 2, best selling retail lending software globally by IBS publishing, the UK based publication.
- Order spread includes from USA, Europe, Africa, Middle East, South East Asia, Japan
- Leading banks in Japan, Middle East, Africa, Sri Lanka and India chose FinnOne™
- Invested in 17 acres of land in a notified SEZ in Jaipur for further expansion

Commenting on the financial results, Mr. Vishnu R. Dusad, CEO & Managing Director stated: “Our vision, mission and focus to invest in IPR led growth continue and creation of excellent value proposition for our customers. Our product led strategy is giving consistent results with 24 significant product wins in FY 2008.”

Accolades/Awards

• Nucleus Software has been listed among the ‘Best 200 under a billion companies in Asia’ (2007) by Forbes Asia magazine.

• FinnOne™ Suite ranked No 2, best selling retail lending software globally by IBS publishing, the UK based financial publication

• Nucleus Software amongst the top 15 ‘most exciting emerging IT/BPO companies to work for’ says NASSCOM.

• Nucleus Software has been selected as one of the top 25 companies adopting “Good Corporate Governance Practices” by the Institute of Company Secretaries of India for second consecutive year in 2007.

• Nucleus Software was adjudged as one of the fastest growing companies in Asia Pacific under Deloitte Technology Fast 500 -2007

• Nucleus Software was conferred with Oracle Partner of the Year Award in Fusion Middleware category at an APAC level.

• Nucleus Software was awarded for being the Fastest Growing ISV in 2007 by Oracle Corporation

Expansion of services and significant projects:

The Company is optimistic on its products business and foresees increasing demand for such niche products around the globe. The Company continues to focus and invest on development of software products for Banking and Financial Institutions.

• New Client Wins:
Nucleus bagged 24 new orders for implementing 64 product modules of the FinnOne™ Suite in the year 2007-2008. Product orders were bagged from leading financial institutions across the globe. For the quarter, Nucleus has won 8 new product orders for implementing 18 modules of FinnOne™ and Cash Management Suite.

• Successful Global Implementations:
This year 70 product modules went live in various markets across the globe. Some of the implementations were completed in record time. This further gave increased visibility to Nucleus in the global markets, and reaffirmed its standing in the global lending and cash management space.

• Outlook
Nucleus software foresees a strong demand for our niche product from across the globe. There are proposals submitted across South East Asia, India, Middle East, Africa, Europe, Australia, Japan, Latin America, and CIS for FinnOne™. For Cash@WillTM we have proposals submitted across South East Asia, Middle East and Africa.

As the global lending market is evolving, Nucleus finds itself strategically placed with wide array of products to cater to the demand. Nucleus believes that in future, Indian product companies will gain greater market share in Global software markets and is all set to capitalize on the upswing in the industry. In the face of global financial crisis like the sub prime crisis, many financial institutions are realizing the strengths and value of the products and solutions offered by Indian IT companies operating in the BFSI domain. Banks and financial institutions across the globe are now looking at increased operational efficiency in their lending business through automated solutions with robust credit appraisal mechanism thereby reducing the cost of lending. At this juncture, transformation from existing legacy systems to technologically advanced and cost effective lending solutions from Indian IT vendors is the key.

• Liquidity
Cash and cash equivalents, including investments in liquid mutual funds and FMP’s, as on March 31, 2008 was Rs. 94.13 crore.

• Human Resources
Nucleus Software added 404 employees this year and has decided to invest in creating a strong human resource base in the future by tying up with educational institutes.

Primary objective in coming fiscal:

We will continue to invest in enhancement and development of path beating niche products thus delivering enhanced customer value.

About Nucleus Software

Nucleus Software (BSE & NSE: NUCLEUS) is the leading provider of lending and transaction banking products to the global financial services industry. Its software powers the operations of more than 150 companies in 50 countries, supporting retail banking, corporate banking, cash management, internet banking, automotive finance and other business areas. Nucleus Software is known for its world-class expertise and innovation in lending and transaction banking technology. It has two flagship products, built on the latest technology:
  • FinnOneTM 10 time winner - World’s Best Selling Lending Solution. 
  • FinnAxiaTM, an integrated global transaction banking solution used by banks worldwide to offer efficient and Innovative global payments and receivables, liquidity management and business internet banking services.
Forward-looking and Cautionary Statements: For risks and uncertainties relating to forward-looking statements, please visit: http://www.nucleussoftware.com/safe-harbor.

For Media related information, please contact:

Rashmi Joshi, Nucleus Software
Email: rashmi.joshi@nucleussoftware.com
Phone: +91-9560694654