Oct 20 - Geometric Q2 Revenue Up 3.8% to $35M, Profit Doubles

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Geometric Q2 Revenue Up 3.8% to $35M, Profit Doubles

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MUMBAI, India, Oct 20, 2008 - Geometric Limited (BSE: 532312, NSE: GEOMETRIC) a leading provider of Engineering Services and Product Lifecycle Management (PLM) solutions and technologies, today announced the Company’s financial results for the quarter ending September 30, 2008. The operating profits for the quarter increased from Rupees 70.77M in Q1 to Rupees 136.46M in Q2.

The Company recorded consolidated operating revenue of Rupees 1,525.95M (USD 34.65M), a sequential increase of 3.8% in US Dollar terms and 8.7% in Rupee terms. In YOY terms, revenues increased by 13.5% and 24.6% in US Dollar and Rupee terms respectively. The Company’s profit after tax (PAT) before extraordinary income, also increased from Rupees 37.65M in Q1 FY09 to Rupees 47.16M in the current quarter.

Commenting on the results, Dr. Ravi Gopinath, Managing Director and CEO said, “Our operating profit margin improved from 5.0% in the previous quarter to 8.9% in this quarter, helped by a favorable exchange rate, increase in off shoring across businesses, and a tight control on our SG&A expenses. While our direct exposure to the BFSI sector is nil, there is a noticeable associated slowdown in our key verticals. Our go to market strategy founded on driving business oriented solutions has enabled us to achieve profitable growth despite the prevailing economic conditions.”

Business Highlights

The Company’s geometry-based search engine algorithm that allows users to search 3D models based on shape, was granted a patent by the US Patent and Trademark Office.

Geometric signed a strategic agreement with a leading global supplier of industrial automation and information software solutions, to deliver manufacturing IT solutions to end-customers of the two companies.

Geometric added new business worth USD 6.7 million. It added 15 new customers this quarter, taking the total number of active clients to 140. Some of the significant contracts are with:

A leading PLM software vendor for outsourced product development. This is a significant addition in the list of existing customers in PLM space
A global leading provider of drilling and production systems to the Oil and Gas industry for PLM implementation
A US Automotive major for product design of the Powertrain on a single source basis
A leading European shipbuilding and marine engineering software company for their product development
One of the world’s leading Automotive Tier I players for PLM support in China

About Geometric

Geometric is a specialist in the domain of engineering solutions, services and technologies. Its portfolio of Global Engineering services and Digital Technology solutions for Product Lifecycle Management (PLM) enables companies to formulate, implement, and execute global engineering and manufacturing strategies aimed at achieving greater efficiencies in the product realization lifecycle.

Headquartered in Mumbai, India, Geometric was incorporated in 1994 and is listed on the Bombay and National Stock Exchanges. The company recorded consolidated revenues of Rupees 4.86 billion (US Dollars 121.6 million) for the year ended March 2008. It employs close to 3000 people across 10 global delivery locations in the US, France, Romania, India, and China. Geometric is assessed at SEI CMMI Level 5 for its software services and ISO 9001:2000 certified for engineering operations.

For more information, visit www.geometricglobal.com.

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