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Technology Stocks : SYNTEL (SYNT) - Upcoming Year 2000 IPO -- Ignore unavailable to you. Want to Upgrade?

To: Stephen Adnan who wrote (2563)	7/29/1999 3:51:00 PM
From: JDN	Read Replies (1) \| Respond to of 2761

Dear Stephen and all: Well, SYNT came in right on estimate. Nothing to write home about but I am very encouraged by the verbage accompanying the earnings. Especially the part about the Pipeline of business. JDN Syntel, Inc. Reports Second Quarter 1999 Results TROY, Mich.--(BUSINESS WIRE)--July 29, 1999--Syntel, Inc. (Nasdaq:SYNT), a leading Information Technology (IT) consulting firm, today announced revenues and earnings for the second quarter ended June 30, 1999. As expected, revenues were $39.7 million, an eight percent decrease versus the same period in 1998. Net income for the second quarter was $5.9 million, or $0.15 per share (diluted), compared to net income of $6.7 million, or $0.17 per share (diluted) for the second quarter 1998. Performance Highlights "Our second quarter performance was in line with analyst consensus expectations," said Bharat Desai, Syntel's Chairman and Chief Executive Officer." We continue to focus on expanding our advanced technology services; specifically, we have seen significant growth in the area of web-enabled application development and integration. We are currently engaged in several initiatives to develop our customers' E-business capabilities. With nearly 20 years of experience in implementing complex legacy and client/server applications, combined with an aggressive head-start on re-skilling our workforce in advanced technologies, we are uniquely positioned to continue growing this segment of our business." Desai continued, "Syntel sees significant opportunities in E-business, CRM, and data warehousing. With the expansion and strengthening of our sales force enterprise-wide, the investment in our advanced technology competency centers, and our investment in training, we are very well positioned to help customers add value to their business." During the second quarter, Syntel Europe Ltd. signed a multi-year IT services agreement with Budget Rent a Car International, England to provide a host of IT services. In addition, for the second year in a row, the company was recognized as a "Hot Growth Company" by Business Week magazine. In 1999, the company was listed as no. 11, up from no. 70 in 1998. Syntel was also named to VARBusiness magazine's VAR500 listing, which ranks the top 500 systems integrators in North America. As announced in March, Syntel continues to buy shares of the company's common stock as part of a 250,000 share repurchase effort. 1999 Outlook In light of current market conditions, which includes delayed project starts until the Year 2000 issue has been addressed, Syntel anticipates that new revenue generation will remain slow for the balance of 1999, resulting in a 10 percent reduction in full year 1999 revenue estimates with a slightly larger percentage decrease in earnings. "Margin performance is expected to remain strong," said John Andary, Syntel's Chief Financial Officer. "In addition, as a result of the ramping up of our sales force, we are seeing increased lead generation and an improvement in both the size and total contract value of our pipeline, which should ultimately result in a return to strong revenue and earnings growth. With no debt, over $70 million in cash, and $45 million in unused credit, Syntel remains in a strong financial position to pursue future growth opportunities."