CALSOFT Q3 FY08 –growth momentum continues

Revenue growth at 37% YOY, PAT up at Rs.11.32 crores -for 9 months

Chennai, 19th January, 2008: California Software Company Limited today announced that its board approved the un-audited financial results for the 3rd quarter of financial year 2007-08.

Healthy Revenues Growth

Consolidated revenues for first Nine months of FY08 were Rs.172.18 crores, reflecting 37.5% growth YOY over revenues in same period last fiscal (Rs 125.24 crores).

Consolidated revenues for Q3FY08 were Rs.57.26 crores, reflecting a 33 % growth YOY over same quarter last fiscal (Rs. 43.04 crores).
Profit and EPS growth-quantum acceleration continues

Consolidated net profits for first Nine months of FY08 were Rs.11.32 crores, reflecting a quantum growth YOY over the net profits in same period last fiscal (Rs 1.35 crores).

Consolidated earnings per share (basic) for the 9 month period (not annualised) was Rs.10.59 –again a quantum improvement of 582 % over the similar period last fiscal (Rs1.82).

For Q3 FY08, the consolidated Net Profits at Rs.4.30 crores­ show a very healthy growth YOY over the corresponding quarter in the previous fiscal (Rs 0.02 crores).

Consolidated Earnings per share (basic) for the quarter increased to Rs 3.48 – a large improvement YOY over corresponding quarter previous fiscal (Rs.0.03).

The profit numbers could have been higher but for currency fluctuations, which adversely impacted profits by about Rs 2.50 crores, during the 9-month period (of which Rs.1.33 crores impact was in Q3).

Business Highlights – for the Q3 &nine months ended December 2007

· Signed MOU to acquire balance 49% of Inatech infosolutions- specialized Oracle solutions provider with major focus in UK market

· Signed MOU to acquire 100% stake in International Innovations Inc, USA

· The split up of 9 month FY08 sales revenues is follows:

o Segment- wise:

Ø Enterprise Solutions (incl. commodities solutions) -71%

Ø Product Engineering Services (Technology solutions) – 29%

o Geography:

Ø N. America – 65%

Ø Europe -27%

Ø Asia-Pacific Region including India – 8%

· Calsoft featured in the Deloitte Technology Fast 50 India rankings for FY 2007 –its second consecutive year in the rankings.

Commenting on the results, Mr. S (Sam) Santhosh, MD & CEO of Calsoft said, ” We are optimistic on continuing the momentum built up in the last 3 quarters. Our acquisitions have started yielding results and we see good

potential in the Oracle enterprise space. “

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About Calsoft: California Software Company Ltd (Calsoft) is a public limited company in India with a global presence. Its development practices are certified at CMMi Level 5. Founded in 1992, Calsoft group including subsidiaries currently employs around 1000 employees. The group has development centers in Chennai, Bangalore and Mysore in India and Pleasanton, (California), Alameda (California) and Boston (MA) in the USA. Calsoft group has marketing offices in the US, UK, Singapore, Dubai, Hong Kong, Denmark and in India. Calsoft is listed in India at NSE (cali.ns) and BSE (cali.bo). For more information on Calsoft visit www.calsoftgroup.com