Note from the MD’s Desk The results of the quarter are disappointing and require the management to introspect on its actions and next steps. While I will comment further on steps we are taking I will take the opportunity to highlight some encouraging developments. We are well placed to win a significant three year opportunity with a large aerospace major against well-established competition. Early in the current quarter, we received confirmation we won another multiyear aerospace contract in North America, which places us in a position to bid for work in other units of this leading conglomerate. Revenues from these contracts will begin to filter into our stream over the next two quarters. Our pipeline continues to be healthy and we have several opportunities in North America and Japan in PLM software. While these are in early phases, the fact is that after years of managing their PLM environments through enhancements and upgrades, the automotive industry appears to be gearing up to revamp their environments to take advantage of new capabilities and approaches. Another development is that our joint venture company 3DPLM commenced operations of its joint venture company, 3D Global Services (3DGS) which is charged with supporting the Dassault Systemes ecosystem by providing high quality services around DS technologies. The Geometric group will be one of its customers. Moreover we continue to invest in the future in other ways. Two major actions are; setting up an innovation business unit, whose role is to create solutions for our customers leveraging our uniqueness viz. capability in Software, Embedded Systems and Mechanical Engineering. We are also setting up a separate Sales Team to seek new customers who can scale to become multi-million dollar accounts. Returning to the past quarter’s results, we have identified three causes for the revenue decline viz. adjustments to revenues to the tune of $1.5 M; Foreign exchange fluctuations mainly due to euro weakness of approximately $1.45 M and delays in projects start as well as other reasons $1 M. The adverse revenue situation which, had a direct impact on margins was further affected by some unusual charges in G&A to the tune of ₹ 40 M. The adjustments to Revenues were driven by the switch over to the new ERP system which resulted in substantial increase in unbilled revenues. Management has, by way of prudence, reversed 100% of unbilled revenues prior to 31.12.2014. The management has put in place stringent measures to prevent recurrence of this effect through a set of checks and balances. We recognize that our EBITDA percentage is well below that of our peers. Hence we have taken steps to streamline all three major cost centers viz. Operations, Sales and Marketing as well as G&A. The impact of these actions will be felt in phases in the 2nd and 3rd quarter. We have also eliminated the office of the COO. By the fourth quarter of FY 16, I expect our efforts will improve our EBITDA margins, which should be in the low teens in the 4th quarter. The changes we have instituted will not be restricted to operational activity. As already disclosed, my contract has been extended. However, with a view to ensuring a smooth transition we have commenced the process of CEO succession. The steps I have outlined above taken together with recent wins and the developments in the marketplace make me believe we are in for a better year, with a strong foundation for future growth. Sincerely Manu