April 26, 2010 | Press Release

New Delhi, India, April 26, 2010: Nucleus Software Exports Limited (NSE: NUCLEUS, BSE: 531209) today announced its results for the fourth quarter and year ended March 31, 2010.

Nucleus Software's consolidated revenue for the year ended March 31, 2010 is at Rs. 291.78 crore in comparison to Rs. 328.40 crore in the previous year. With total expenses at Rs. 237.70 crore in comparison to Rs. 278.80 crore in the previous year, the consolidated EBITDA increased to Rs. 54.08 crore in comparison to Rs. 49.60 crore in the previous year. Net Profit after Tax (PAT) is at Rs. 38.40 crore in comparison to Rs. 32.26 crore in the previous year

Consolidated revenue for the quarter ending March 31, 2010, is at Rs. 72.25 crore in comparison to Rs. 85.81 crore in the corresponding quarter of the previous year. With total expenses at Rs. 58.42 crore in comparison to Rs. 74.45 crore in the previous year, the consolidated EBITDA increased to Rs. 13.83 crore in comparison to Rs. 11.36 crore in the corresponding quarter of the previous year. Net Profit after Tax (PAT) is at Rs. 9.19 crore in comparison to Rs. 9.60 crore in the corresponding quarter of the previous year.

Nucleus Software won record 31 orders globally during the year, a tremendous achievement especially considering the global meltdown. One of the biggest IP creators of the country, Nucleus, added 14 new clients in the financial year, even in this extremely uncertain global economic scenario - a testimony to the trust shown by the banking industry globally in the prowess of Nucleus' world-class products. .

Highlights:

Financial Year Ended March 31, 2010 

1. Consolidated revenue at Rs. 291.78 crore from software products and software development services in comparison to Rs. 328.40 crore in the previous year.
2. Product business revenue for the year at Rs. 173.95 crore in comparison to Rs. 219.96 crore in the previous year.
3. EBIDTA at Rs. 54.08 crore in comparison to Rs. 49.60 crore in the previous year.
4. Net Profit after Tax (PAT) at Rs. 38.40 crore in comparison to Rs. 32.26 crore in the previous year.
5. Earning Per Share for the year at Rs. 11.86 in comparison to Rs. 9.97 in the previous year.
6. Dividend recommended at 25 % (Rs. 2.50 per share), against 25% (Rs. 2.50 per share) previous year.

Quarter Ended March 31, 2010

1. Consolidated revenue at Rs. 72.25 crore from software products and software development services in comparison to Rs. 85.81 crore in the corresponding quarter of the previous year.
2. Product business revenue for the quarter at Rs. 48.11 crore in comparison to Rs. 54.90 crore in the corresponding quarter of the previous year.
3. EBIDTA at Rs. 13.83 crore in comparison to Rs. 11.36 crore in the corresponding quarter of the previous year
4. Net Profit after Tax (PAT) at Rs. 9.19 crore in comparison to Rs. 9.60 crore in the corresponding quarter of the previous year.
5. Earning Per Share for the quarter at Rs. 2.84 in comparison to Rs. 2.97 in the corresponding quarter of the previous year.

Other Key Information

For the Financial Year Ended March 31, 2010 

1. 31 product order wins from across the globe 
2. 14 new customers added
3. Won orders for 87 product modules for FinnOne™ and Cash@WillTM Suite
4. 84 product modules successfully implemented across the globe
5. Global strength of employees as on March 31, 2010 is 1558
6. Nucleus has further strengthened its global partners’ network, adding 8 new alliances across LATAM, Africa and SEA.
7. Nucleus’ flagship product FinnOne™ has been ranked as World’s No.1 Selling Lending Software Product’ by IBS publishing, UK, for calendar year 2009 

For Quarter Ended March 31, 2010

1. 10 product order wins from across the globe
2. 1 new customer added
3. Won order for 15 product modules for FinnOne™ and Cash@WillTM Suite
4. 21 product modules successfully implemented across the globe 

Key Highlights

Cash and Bank Balances’ and ‘Current Investments’ at Rs. 162.40 crore as on March 31, 2010. 

Commenting on the financial results, Mr. Vishnu R. Dusad, CEO and Managing Director, Nucleus Software, said: “Nucleus Software is heading towards becoming one of the icons of what intellectual property in India can produce. Our products are a benchmark across the globe, with our flagship product being ranked as the No.1 selling lending software product for the 2nd consecutive year by IBS Publishing, UK.

Our services, solutions and business model are well suited to help our customers reap maximum benefits from their investments. We are focusing on enhancing our business and investing smartly for the future. We have increased our focus on enhancing our product technology and creating revolutionized products that would enable banks and financial institutions to mitigate risk and provide quicker and enriched services to their customers.

Sentiments are improving, banks and financial institutions are open to taking product order decisions that were suspended for some time. We see this trend in all markets, including Latin America. The Company continues to focus and invest on development of software products for Banking and Financial Institutions”

On human resources programs in a tough staffing environment, Mr. Dusad said, “We continue to invest in our employees through training and building their skills across various technologies and domains.”

Accolades/Awards

1. Nucleus Software’s FinnOneTM has been ranked ‘World's No 1 Selling Lending Software product’ (for year 2009) by IBS Publishing.
2. Annual Report of Nucleus Software for year ended March 31, 2009 has been adjudged as the BEST under the category 'Information Technology, Communication and Entertainment enterprises' of the 'ICAI Awards for Excellence in Financial Reporting' by the Institute of Chartered Accountants of India (ICAI). A GOLD SHIELD was awarded to the Company. Nucleus has received the Gold Shield for the 2nd consecutive year.
3. Nucleus Software has been ranked among the Top 25 companies adopting “Good Corporate Governance Practices” by ICSI for fourth consecutive year in 2009
4. South Asian Federation of Accountants (SAFA) has adjudged Nucleus’ Annual Report as the recipient of the merit position for the Best Presented Accounts and Corporate Governance Disclosures Award 2008 under the category of Corporate Governance Disclosure.
5. Forrester Research, a leading independent analyst firm, has recognized Nucleus Software as an industry vertical specialist in their recent report “Working With Tier Two Offshore Providers”.

      New Client Wins:

Nucleus bagged 31 orders for implementing 87 product modules of the FinnOne™ Suite and Cash@WillTM in the year 2009-2010. Product orders were bagged from leading financial institutions across the globe. For the quarter, Nucleus has won 10 product orders for implementing 15 modules of FinnOne™ and Cash Management Suite.

    Successful Global Implementations:

This year 84 product modules went live in various markets across the globe. Some of the implementations were completed in record time. This further gave increased visibility to Nucleus in the global markets, and reaffirmed its standing in the global lending and cash management space

     Liquidity
Cash and cash equivalents, including investments in liquid mutual funds and Fixed Deposits with Banks, as on March 31, 2010 was Rs. 162.40 crore against Rs. 122.17 crore as on March 31, 2009.