India's Satyam Infoway in the red

Sify's net loss widened, as revenues continued to grow

By CNN's Kristie Lu Stout and wire reports

MUMBAI, India (CNN) -- Satyam Infoway announced a fourth quarter net loss of $18.2 million, a steep plunge from its $3.8 million loss posted a year ago.

But while losses widened, sales revenues for the Indian Internet services firm continued to grow.

Total revenue in the fourth quarter doubled to $11.9 million from $5.9 million in the year-ago period.

The company, known as Sify, had $28 million in cash at the end of 2000-01 and expects to break even in the current year.

Growth in corporate services

"This quarter will be remembered by all of us in Sify as the quarter in which we posted a reduction in cash loss for the first time -- a clear reversal of trend," Sify managing director and CEO R. Ramaraj, said in a statement.

"This was achieved by expanding the top line sales revenue and reducing operating costs simultaneously."

The Nasdaq-listed company posted a loss for 2000-01 of $53.5 million compared with $8.1 million the previous year.

Operating losses at the company tapered to $7.3 million in January-March from $8.5 million in the previous quarter.

Sify is majority-owned by Satyam Computer Services and is India's second-largest commercial Internet service provider after the state-run Videsh Sanchar Nigam Ltd (VSNL).

The Internet services firm earned 68 percent of its revenues from corporate services, 24 percent from retail services and eight percent from its portal business in the fourth quarter.

Key corporate clients include Lucent, Ford, State Bank of India, and ING Insurance.

Sify shares on Nasdaq closed Monday down 4.1 percent at $3.74. Shares in parent Satyam Computer Services were flat in Tuesday trading on the Mumbai stock exchange, down about 1 rupee to 204.35 rupees at midday.

Reuters contributed to this report.