Satyam finally reveals financial data showing revenue slid

Company warns the data is not audited, and may be inaccurate

Embattled Indian outsourcer Satyam Computer Services released on Tuesday the financial information that was provided to investors at the time of the bid for a majority share in the company, though it warned that the information could be unreliable.

Satyam was plunged into a crisis after its co-founder B. Ramalinga Raju stated in January that the company had inflated revenue and profits for several years.

The company on Tuesday reported revenue of Indian rupees 22 billion (US$448 million at the exchange rate on the last date of the period) and net profit of rupees 1.8 billion for the quarter ended December 31.

The revenue figure represents a 2.6 per cent drop from revenue in the same quarter in 2007, while net profit dipped 58 per cent to 1.8 billion in fourth quarter 2008 from rupees 4.3 billion in fourth quarter a year earlier.

For the month of January, the company posted revenue of rupees 6.5 billion for a net profit of rupees 40 million.

Revenue was rupees 6.4 billion in February for a net profit of rupees 520 million.

The company lost 924 staff in December last year, 746 staff in January, and 1602 in February. It had 41,622 staff as on March 28.

Tech Mahindra, another Indian outsourcer, has acquired 31 per cent of the equity in Satyam and has made an offer for another 20 per cent that will give it a majority 51 per cent stake in Satyam.

The re-statement of Satyam's accounts, ordered by a government-appointed board in January, is still not complete. The figures released by the company are based on internal data available on the company's MIS (management information systems), Satyam said. The information has not yet been audited by an outside accounting firm.

PriceWaterhouseCoopers, Satyam's accounting firm, said in a note from January that Satyam accounts from 2000 to September 2008 should no longer be relied upon.

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John Ribeiro

IDG News Service
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