I-flex posts half-year results

Highlights of the Quarter:

• Oracle Corporation announces acquiring a majority interest in i-flex; association signals strategic shift in the core banking marketplace
• Strong growth momentum in all lines of business; added 16 new customer relationships for the group; 9 of these are from US. The total number of customers serviced increases to 595 up from 579 in the last quarter.
• Gross addition of 1047 employees in the quarter, highest addition in any quarter in the past, to meet growing business requirements; the total staff strength of the group increases to 6200 (inclusive of KPO business) – an increase of 57% (46% excluding KPO) over that in the period ending September 2004.
• Revenue for the quarter posts 38% YoY growth

Solutions Portfolio

Products Business

• Registered several strategic wins for the product business; added 8 new product customers in the quarter
• Canara Bank, India a leading public sector bank in India signs for deployment of FLEXCUBE in its strategic core banking transformation initiative
• Entered into a significant global agreement with a top-tier global bank to deploy the FLEXCUBE Investor Services product
• One of the largest retail lenders in US, and part of a global MNC bank adopts Reveleus retail credit risk and customer profitability platform
• A top regional bank adopts the Reveleus ORTOS solution for its operational risk management program
• Customer win announcements: First Investment Bank, one of Bulgaria's leading banks, selects i-flex products and solutions to realign technology for growth in operations; Indovina Bank ltd, Vietnam selects FLEXCUBE as its core banking solution for its banking operations; second customer in the country
• Added US$ 12 million of new License Fees to the tank; Product Tank at the end of the quarter increases to US$ 61 million – the highest level attained so far.

Services Business

• Business continues to show strong growth momentum; revenues post an increase of 21% on QoQ basis and 47% on half yearly basis; acquired five new relationships for the business.
• Strong growth in non-Citi revenues, with several top-tier US customers; registers 49% sequential growth. Citi revenues continue to be robust and steady.
• i-flex Consulting risk management practice continues to win strategic new assignments; gaining leadership in process and risk management areas
• Launched the i-flex remote infrastructure management (i-RIM) center to offer i-flex’s product customers a remote data center management service
• Set up an Oracle Competency Center to offer high value solutions based on the Oracle technologies and applications to the financial industry, with an initial staffing of 150 consultants

KPO Business

• Acquisition of 5 new US clients in the quarter;
• Opened up a new center in Gurgaon with 40,000 sq ft area; and added a gross of 221 employees in the quarter, to create a growth platform for the new business Awards and Accolades
• Gartner positions Reveleus in the "Leaders Quadrant" in its Basel II Risk Management Application Software Magic Quadrant report. The report evaluated 27 select global players in this area.
• Teleos, an independent knowledge management and intellectual capital research company, has selected i-flex as one of the five winners of the inaugural Indian Most Admired Knowledge Enterprises study.
• i-flex was awarded the Certificate of Excellence in IT Exports by the State Government of Karnataka.

Speaking on the occasion, Rajesh Hukku, Chairman & Managing Director said, "We are witnessing a significant mindset change in the global financial industry with greater attention to the state of ageing core systems. The strength we have gained with the investment by Oracle in i-flex is helping to further accelerate our business momentum."

R. Ravisankar, CEO, International Operations and Technology added, "We now have the most comprehensive portfolio of solutions to help financial institutions meet the challenges of a highly competitive environment – and we continue to see rapid growth across the entire portfolio."

Commenting on the financials Deepak Ghaisas, CEO, India operations & CFO said, "While the quarter has witnessed a healthy top-line growth, the impact of investments in infrastructure, people and sales and marketing has some impact on the margins. Overall, we are well prepared to exploit the growing opportunities in the marketplace."

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