Kanbay net revenue up 39 p.c. YoY

BANGALORE: Kanbay International has posted consolidated net income of $7.6

million for the first quarter ended March 31, 2006.

For the same time, the company has recorded revenue of $74.5 million, up 39

per cent year-over-year and 22 per cent sequentially

Kanbay is headquartered in the United States and has 21 global locations,

including Pune, Hyderabad, and Chennai. The company has roughly 6,200 associates

worldwide, with over 4,700 associates based in India. For CY 2006, Kanbay is

expecting revenues of $385 million.

During the quarter, the company has announced intent to acquire Adjoined

Consulting for approximately $165 million consisting of both cash and stock.

Kanbay has revised the revenue guidance to at least $385 million for the year

2006.

Commenting on the results, Raymond Spencer, chairman and CEO of Kanbay,

said,” The first quarter of 2006 was a historic one for Kanbay and all of

its stakeholders. We are pleased with our performance and are positive about our

future prospects as well.

Cyprian D'Souza, managing director of Kanbay's India operations, added,

“We are experiencing strong demand for our services and see significant

opportunities for future growth. In the first three months of 2006, we added 964

technical associates and finished the quarter with over 5,600 technical

associates globally. Roughly 76 per cent or over 4,200 of our technical

associates are in our delivery centers in Pune, Hyderabad, and Chennai. This

gives us one of the highest offshore leverage ratios in the industry.”

D'Souza continued, “Our outlook for India remains positive. In FY 2006,

we expect our capital expenditure budget to be roughly $50 million. A

significant portion of that money will be spent in India to build the

infrastructure we need to support our current business and our growth. In the

first quarter, our capital expenditures were about $19 million.

Major projects we are currently working on are building our new campus in

Hyderabad and the construction of our Global Learning Center in Pune. We are

planning to inaugurate our new Hyderabad campus in June and that campus will

ultimately have capacity for 3,500 associates.”

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