To all: Well, here is first qtr results. I am satisfied. Revenue dropped over 6% compared to last year but operating margins increased to such an extent that Gross Profit actually increased. Net profit decreased 1 cent to 14 cents compared to 15 cents. I felt positive management remarks also. Financial condition continues strong with over 2 1/2 to one current ratio and NO long term debt. Follows is the verbage only as tables dont show up well on posts. JDN
Syntel, Inc. Reports First Quarter 1999 Results
TROY, Mich.--(BUSINESS WIRE)--April 26, 1999--Syntel, Inc.
(Nasdaq:SYNT), a leading Information Technology (IT) consulting firm,
today announced revenues and earnings for the first quarter ended
March 31, 1999 which are consistent with previously announced internal
expectations and analyst estimates.
Revenues were $38.8 million, a 6.7 percent decrease versus the
same period in 1998. Net income for the first quarter was
$5.4 million, or $0.14 per share (diluted), compared to net income of
$6.0 million, or $0.15 per share (diluted) for the first quarter 1998.
Performance Highlights
"Syntel's overall performance for the first quarter was in line
with our expectations," said Bharat Desai, Syntel's Chairman and Chief
Executive Officer. "As we discussed last quarter, we are completing
the expansion of our direct sales force to heighten the focus on
IntelliSourcing and advanced technology opportunities. The bolstering
of our sales force, along with our decision to make a planned
transition from the Year 2000 business, is positioning us well for
future marketplace demands."
The Company's gross profit and income from operations continue to
improve. Gross profit increased to 38 percent of revenues for the
first quarter 1999, compared to 35 percent for the same period in
1998.
"Our customer value proposition, combined with a mature,
well-oiled delivery organization has allowed us to generate strong
gross margins," said John Andary, Syntel's Chief Financial Officer.
"As a result, our operating margin percentage is comparable to last
year's first quarter, in spite of the investments which we are making
in our sales organization. Additionally, our consistent, solid
operating performance has allowed us to continue to strengthen our
cash position and balance sheet, providing the financial leverage
necessary for future growth, both organically and through strategic
acquisitions."
During the quarter, Syntel announced that Blue Cross Blue Shield
of Georgia renewed an expanded multi-million dollar IntelliSourcing
contract to provide applications development services. Syntel was also
awarded ISO 9001 certification for its Global Development Center in
Chennai, India and was honored with a "Best Business Partner" award
from Dayton Hudson Corporation for its role in a massive Global
Merchandising System project. |
