Dear parrl: Here is the release:
Syntel, Inc. Reports 35% Revenue and 142% Net Income Increase for Fiscal Year 1998
TROY, Mich.--(BUSINESS WIRE)--Feb. 23, 1999--Syntel, Inc.
(Nasdaq:SYNT), a leading Applications Management and information
technology (IT) consulting firm, today announced revenues and earnings
for fiscal year 1998 and the fourth quarter ended December 31, 1998.
For fiscal year 1998, revenues were $168.0 million, a 35 percent
improvement over revenues of $124.3 million for fiscal year 1997. Net
income for the twelve-month period increased 142 percent to
$24.6 million, or $0.63 per share (diluted), compared to pro forma net
income of $10.2 million, or $0.26 per share (diluted) for the same
period in 1997. Results reflect the 3-for-2 stock split in April 1998.
Revenues for the fourth quarter 1998 were $39.6 million, a
12 percent increase over $35.4 million for the same period in 1997.
Net income increased 43 percent for the fourth quarter to
$5.4 million, or $0.14 per share (diluted), compared to net income of
$3.8 million, or $0.10 per share (diluted) for the fourth quarter
1997.
Performance Highlights
----------------------
"We completed another strong year in our 19-year history with a
solid 35 percent increase in revenue and 142 percent increase in net
income," said Bharat Desai, Syntel Chairman and CEO. "We worked to
increase the focus on our IntelliSourcing offering for providing
high-value applications management services to new customers during
1998 such as Borders, Blue Cross Blue Shield of Georgia, and Ryder,
among others. Syntel is also pleased with our continued migration from
staff enhancement services to our IntelliSourcing offering, which now
accounts for more than 60 percent of our revenue mix."
The migration to higher-value IntelliSourcing engagements has
driven continued improvement in the Company's gross profit margins.
Gross profit increased to 37.5 percent of revenues for fiscal year
1998, compared to 29.6 percent of revenues for fiscal 1997.
1999 Outlook
------------
"In the past, we have achieved consistent revenue growth through
organic means," said John Andary, Syntel Chief Financial Officer.
"Now, we'll reach our 1999 and subsequent goals through a continued
focus on expanding our IntelliSourcing services, growing our global
sales force, continued investment in our Enterprise Solutions
services, and strategic acquisitions."
"Based on the previously announced strategic decision to move
away from Year 2000 revenue, Syntel anticipates continued revenue
softness in the first half of 1999," Andary added. "Sales force
expansion efforts should favorably affect revenues in the second half
of 1999. We anticipate no change for the full-year 1999 EPS consensus
estimate."
About Syntel Inc.
Syntel provides cutting-edge Applications Management and
technology consulting services to Fortune 500 companies such as AIG,
Dayton Hudson, Allied Van Lines, DaimlerChrysler Corporation, and
Borders, among others. Syntel helps its clients better manage their
business applications to improve time to market, productivity, and
competitiveness through integrated applications solutions. The company
has approximately 2,100 employees in North America, Europe, and Asia
and operates four world-class Global Development Centers in the US and
India. To learn more about Syntel, visit the company web site at:
syntelinc.com
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For those of you who forgot earnings estimates were:
4th qtr 13 cents (beat by a penny)
year 62 cents
Next Year 65 cents
Good and bad in this release--Good is they plan continual growth including acquisitions which because of their large cash balance should be able to scoop up some good ones at the right price.
Bad is, while they say next year is expected to meet estimate estimate is not much of a growth factor and they say 1st half will be soft. Other companies who have said that have been pounded. I guess it all depends now on the Conference Call. JDN_ |
