R Ramaraj, Sify managing director and CEO and Satyam co-founder, to quit the company to start out on his own.
The company has already appointed Raju Vegesna as managing director and CEO of the company. Vegesna also leads US-based Infinity Capital Ventures, the new promoters of the Nasdaq-listed Sify.
Reports said that Ramaraj quit the company over the discord between him and the Infinity Capital. Apart from Ramaraj some other top officials of the company too have quit, reports said. The Sify statement made no mention of this on Tuesday when the company released its first-quarter results.
Meanwhile, Sify reported revenues of $28.74 million for the quarter ended June 30, 2006, 29.1% higher than the quarter ended 30th June 2005. The sequential growth in revenues over the previous quarter was 2.5%.
Sify's cash profit, in adjusted EBITDA terms, for the quarter was $4.03 million, an increase of $3.71 million compared to the same quarter last year. See below for a reconciliation of Adjusted EBITDA to Sify's U.S. GAAP operating results.
Sify's net profit for the quarter under U.S. GAAP was $ 1.36 million compared to a net loss of $2.14 million in the first quarter of the previous fiscal year. The company reported net profits of $0.46 million in the previous quarter.
Sify ended the quarter with a cash balance of $ 55.27 million after capital expenditures of $6.7 million and the acquisition of Globe Travels, USA, during the fourth quarter.
The Sify statement said that Ramaraj is in discussions with the company and with Vegesna to ensure a smooth transition and has agreed to be available to work as a consultant.
Ramaraj plans to 'shepherd start-up organisations to success.' One area where Ramaraj will work on in future is with select start-ups and early stage companies to grow their businesses successfully, including ensuring adequate funding to enable their development. He will also be associated with leading venture capital firms to identify, fund and mentor select start-ups to commercial success.