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

To: Nanda who wrote (1534)	4/28/1998 4:03:00 PM
From: paul e thomas	Read Replies (1) \| Respond to of 2761

CONFERENCE CALL ANALYSIS The predominant theme that echoed through the analysts comments was one of great surprise as financial performance on a variety of fronts way outpaced expectations.The sequential revenue growth of 17% and accelerating year over year growth now for 7 consecutive quarters will attract momentum investors.My overall impression is that SYNT strength lies in a very good ability to execute .Their performance is primarily being driven by their top 5 customers that account for 63% of total business.It is notable that their largest customer(AIG)has renewed a multiyear contact a year ahead of schedule.SYNT expects Y2K business which is growing faster than expected 3 months ago will account for a little over 20% of their revenue by 1999.SYNT appears to be rather far along in planning how to replace their Y2K business.It appears most of the long term growth will come from internal development rather than through aquisitions.SYNT will have 30% of their work performed overseas.They do not appear to be the low cost producer as SYNT gross margins are 35% versus 46% for IMRS. This is possibly due to IMRS having 70% of their work performed in INDIA. The key issue now is whether the Analysts will substantially increase the 1998 and 1999 earnings estimates. I believe we will see continued increases in Mutual Fund ownership.It would not surpise me is The Chairman and his wife begin to reduce their extremely high % ownership of the company. I believec the float needs a further increase to attract more institutions concerned about liquidity.