excellent quarterly

So, will TLS buy them or TEN??





Hyro Limited

Appendix 4C Quarterly Report

Business Commentary

Hyro presents its Quarterly Report for the period July 2006 to September 2006. This commentary is included to provide information to investors and the market regarding the business and activities of Hyro Limited, (ASX : HYO).

Highlights

􀂃 Hyro has generated $6.1 million revenue for this quarter. Year-to-date revenue of
$15.9 Million (January - September 2006) remains in line with previously published
estimates.
􀂃 Revenue growth is strongly underpinned by strong revenue backlog and sales
pipeline figures.
􀂃 Previously advised annual estimates for revenue and operational profit remain
unchanged.
􀂃 The Group has remained operationally profitable every month since May 2006.
􀂃 Although the Net Operating Cashflows record a cash consumption of $244
thousand, the growth of the business through new client engagements has
necessitated a cashflow utilisation to fund increased receivables, recruitment,
resourcing and other related investments.
􀂃 The Group continues to record strong growth in employee numbers in both
Australia/NZ operations and international operations as the ramp up of resources
continues in line with contract growth. Total employee numbers have risen from
first quarter figures of 130 in A/NZ and 83 in Thailand to current levels of 148 in
A/NZ and 103 in Thailand.
􀂃 Hyro Thailand remains profitable and on track to achieve 2006 revenue and
operational profit forecasts.
􀂃 The Hyro Wireless and Broadcast (‘W&B’) business unit, previously identified as
an area of investment for the company, has continued to mature and enhance the
Group’s capability. The company has recorded a number of significant strategic
wins in this business unit during recent weeks, which include a material
engagement with Network Ten and high profile projects with Telstra. The Hyro
W&B business unit is now contributing favourably to Hyro’s profitability.
􀂃 The company continues the strategy of investing in emerging capabilities and
markets to deliver on client requirements in light of the success of the Mobile and
Broadcast investment to date. Specifically, the company has added new
capabilities in Content Services, Managed Services, and Identity Management
Services to further refine the end-to-end digital services offering.
􀂃 Hyro has received industry recognition during the third quarter by winning two
prestigious awards at the 2006 Australian Direct marketing Association’s Mobile
Marketing and Advertising Awards.
􀂃 The company continues to actively seek accretive strategic acquisition
opportunities.
􀂃 The Management Team remains focussed on the strategic objectives set for the
2006 financial year and beyond.