Dear Landrush: Couldnt disagree with you more. Also who dast downgrade SYNT? Dont you realize the 3rd qtr is the DUMPING QTR. I bet everything but the kitchen sink went into that qtr. 4th should be great. I am posting the press release. Note the huge increase in Working Capital and Current Ratio. Most of the betterment is in CASH. SYNT is well positioned now to take advantage of any opportunity that comes along. IMHO. JDN
Related QuotesSYNT
18 1/4
-1 1/4
delayed 20 mins - disclaimerWednesday October 28, 8:08 am Eastern Time
Company Press Release
Syntel, Inc. Reports Net Income Up 122 Percent And Revenues Up 30 Percent for Third Quarter 1998
TROY, Mich.--(BUSINESS WIRE)--Oct. 28, 1998--Syntel, Inc. (NASDAQ:SYNT - news), a leading global provider of information technology solutions, today reported strong net income and record revenues for the third quarter ended September 30, 1998.
Net income increased 122 percent for the third quarter to $6.5 million, or $0.16 per share (diluted), compared to pro forma net income of $2.9 million, or $0.07 per share (diluted) for the third quarter 1997. Revenues increased 30 percent in the quarter to $43.6 million, up from $33.6 million for the same period in 1997.
For the first nine months of 1998, net income increased 200 percent to $19.2 million, or $0.49 per share (diluted), compared to pro forma net income of $6.4 million, or $0.16 per share (diluted) for the same period in 1997. Revenues for the nine-month period were $128.4 million, a 44 percent improvement over revenues of $88.9 million in the initial nine months of 1997.
Performance Highlights
''Syntel's performance is a direct result of the continued execution of our Global Delivery Model,'' said Bharat Desai, Syntel's Chairman and Chief Executive Officer. ''This model, which features fully-networked facilities around the world, gives Syntel an edge in competing for major contracts on a fixed-price basis, while continuing to increase the company's overall profit margins. This advantage has enabled us to succeed in competitive bidding situations, as evidenced by two recently announced contracts in which we offered very high quality, cost-effective, and timely solutions.''
''We are pleased with the continued shift of Syntel's business mix to our IntelliSourcing(SM) service offering,'' stated John Andary, Syntel's Chief Financial Officer. ''In addition to improved margins, this migration enables us to optimize a very strong delivery organization while leveraging our staff of IT professionals.''
The Company's gross profit and income from operations continue to improve. Gross profit increased to 36 percent of revenues for the third quarter 1998, compared to 29 percent for the same period in 1997. Income from operations increased to $8.4 million for the third quarter 1998, versus $3.6 million for the same period in 1997.
About Syntel, Inc.
Syntel, which marked its first year as a publicly-traded company during the third quarter of 1998, provides cutting-edge Applications Management and technology consulting services to Fortune 500 companies such as AIG, Dayton Hudson, Ford Motor Company, 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 2,200 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: www.syntelinc.com
Safe Harbor Provision
This news release includes forward-looking statements, including those with respect to the future level of business for Syntel, Inc. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors set forth in the Company's Annual Form 10-K document dated March 30, 1998. Factors that could cause results to differ materially from those set forth above include general trends and developments in the information technology industry, which is subject to rapid technological changes, and the Company's concentration of sales in a relatively small number of large customers, as well as intense competition in the information technology industry, which the Company believes will increase.
Statement of Income and Balance Sheet follow.
SYNTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
3 MONTHS 9 MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
__________________ __________________
1998 1997 1998 1997
____ ____ ____ ____
Revenues $43,607 $33,596 $128,413 $88,921
Cost of revenues 27,772 23,681 81,915 63,422
_______ _______ ________ _______
Gross profit 15,835 9,915 46,498 25,499
Selling, general and
administrative
expenses 7,423 6,276 20,447 17,423
_______ _______ ________ _______
Income from operations 8,412 3,639 26,051 8,076
Other income, principally
interest 680 299 1,503 522
_______ _______ ________ _______
Income before
income taxes 9,092 3,938 27,554 8,598
Income taxes 2,638 1,836(a) 8,343 1,976(a)
_______ _______ ________ _______
Net income $ 6,454 $ 2,102 $ 19,211 $ 6,622
_______ _______ ________ _______
_______ _______ ________ _______
HISTORICAL EARNINGS PER SHARE(1)
Basic $ 0.17 $ 0.06 $ 0.50 $ 0.18
Diluted $ 0.16 $ 0.05 $ 0.49 $ 0.17
1997 PRO FORMA NET INCOME:
Income before income taxes $ 3,938 $ 8,598
Pro forma income taxes(c) 1,030 2,200
________ _______
Pro forma net income $ 2,908 $ 6,398
________ _______
________ _______
1997 PRO FORMA EARNINGS PER SHARE(1)
Basic $ 0.08(b) $ 0.17(b)
Diluted $ 0.07(b) $ 0.16(b)
Weighted average common
shares
outstanding -
diluted 39,311 38,988 39,366 39,240
_______ _______ ________ _______
_______ _______ ________ _______
(1) Gives effect to a 3:2 stock split effective April 22, 1998.
(a) - In connection with the termination of its S corporation
status, the Company changed its method of accounting for tax reporting
purposes from the cash method to the accrual method, resulting in a
one time charge of $1,090 to income taxes.
(b) - Pro forma EPS as if the company had been taxed as a
C corporation for the period presented.
(c) - Represents the income taxes, as if the company had been a
C corporation for the periods presented.
SYNTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
September 30, December 31,
1998 1997
____ ____
ASSETS
Current assets:
Cash and cash equivalents $55,772 $32,945
Accounts receivable, net 25,437 20,644
Advanced billings and other
current assets 11,127 6,897
_______ _______
Total current assets 92,336 60,486
Property and equipment 12,147 9,299
Less accumulated depreciation 6,397 5,060
_______ _______
Property and equipment, net 5,750 4,239
Deferred income taxes, noncurrent 817 507
_______ _______
$98,903 $65,232
_______ _______
_______ _______
LIABILITIES
Current liabilities:
Accrued payroll and related costs $15,531 $10,388
Other current liabilities 12,698 9,047
Deferred revenue 11,927 5,705
_______ _______
Total current liabilities 40,156 25,140
Income taxes payable -- 507
_______ _______
Total liabilities 40,156 25,647
SHAREHOLDERS' EQUITY
Total shareholders' equity 58,747 39,585
_______ _______
Total liabilities and
shareholders' equity $98,903 $65,232
_______ _______
_______ _______Related QuotesSYNT
18 1/4
-1 1/4
delayed 20 mins - disclaimerWednesday October 28, 8:08 am Eastern Time
Company Press Release
Syntel, Inc. Reports Net Income Up 122 Percent And Revenues Up 30 Percent for Third Quarter 1998
TROY, Mich.--(BUSINESS WIRE)--Oct. 28, 1998--Syntel, Inc. (NASDAQ:SYNT - news), a leading global provider of information technology solutions, today reported strong net income and record revenues for the third quarter ended September 30, 1998.
Net income increased 122 percent for the third quarter to $6.5 million, or $0.16 per share (diluted), compared to pro forma net income of $2.9 million, or $0.07 per share (diluted) for the third quarter 1997. Revenues increased 30 percent in the quarter to $43.6 million, up from $33.6 million for the same period in 1997.
For the first nine months of 1998, net income increased 200 percent to $19.2 million, or $0.49 per share (diluted), compared to pro forma net income of $6.4 million, or $0.16 per share (diluted) for the same period in 1997. Revenues for the nine-month period were $128.4 million, a 44 percent improvement over revenues of $88.9 million in the initial nine months of 1997.
Performance Highlights
''Syntel's performance is a direct result of the continued execution of our Global Delivery Model,'' said Bharat Desai, Syntel's Chairman and Chief Executive Officer. ''This model, which features fully-networked facilities around the world, gives Syntel an edge in competing for major contracts on a fixed-price basis, while continuing to increase the company's overall profit margins. This advantage has enabled us to succeed in competitive bidding situations, as evidenced by two recently announced contracts in which we offered very high quality, cost-effective, and timely solutions.''
''We are pleased with the continued shift of Syntel's business mix to our IntelliSourcing(SM) service offering,'' stated John Andary, Syntel's Chief Financial Officer. ''In addition to improved margins, this migration enables us to optimize a very strong delivery organization while leveraging our staff of IT professionals.''
The Company's gross profit and income from operations continue to improve. Gross profit increased to 36 percent of revenues for the third quarter 1998, compared to 29 percent for the same period in 1997. Income from operations increased to $8.4 million for the third quarter 1998, versus $3.6 million for the same period in 1997.
About Syntel, Inc.
Syntel, which marked its first year as a publicly-traded company during the third quarter of 1998, provides cutting-edge Applications Management and technology consulting services to Fortune 500 companies such as AIG, Dayton Hudson, Ford Motor Company, 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 2,200 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: www.syntelinc.com
Safe Harbor Provision
This news release includes forward-looking statements, including those with respect to the future level of business for Syntel, Inc. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors set forth in the Company's Annual Form 10-K document dated March 30, 1998. Factors that could cause results to differ materially from those set forth above include general trends and developments in the information technology industry, which is subject to rapid technological changes, and the Company's concentration of sales in a relatively small number of large customers, as well as intense competition in the information technology industry, which the Company believes will increase.
Statement of Income and Balance Sheet follow.
SYNTEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(in thousands, except per share data)
3 MONTHS 9 MONTHS
ENDED SEPTEMBER 30 ENDED SEPTEMBER 30
__________________ __________________
1998 1997 1998 1997
____ ____ ____ ____
Revenues $43,607 $33,596 $128,413 $88,921
Cost of revenues 27,772 23,681 81,915 63,422
_______ _______ ________ _______
Gross profit 15,835 9,915 46,498 25,499
Selling, general and
administrative
expenses 7,423 6,276 20,447 17,423
_______ _______ ________ _______
Income from operations 8,412 3,639 26,051 8,076
Other income, principally
interest 680 299 1,503 522
_______ _______ ________ _______
Income before
income taxes 9,092 3,938 27,554 8,598
Income taxes 2,638 1,836(a) 8,343 1,976(a)
_______ _______ ________ _______
Net income $ 6,454 $ 2,102 $ 19,211 $ 6,622
_______ _______ ________ _______
_______ _______ ________ _______
HISTORICAL EARNINGS PER SHARE(1)
Basic $ 0.17 $ 0.06 $ 0.50 $ 0.18
Diluted $ 0.16 $ 0.05 $ 0.49 $ 0.17
1997 PRO FORMA NET INCOME:
Income before income taxes $ 3,938 $ 8,598
Pro forma income taxes(c) 1,030 2,200
________ _______
Pro forma net income $ 2,908 $ 6,398
________ _______
________ _______
1997 PRO FORMA EARNINGS PER SHARE(1)
Basic $ 0.08(b) $ 0.17(b)
Diluted $ 0.07(b) $ 0.16(b)
Weighted average common
shares
outstanding -
diluted 39,311 38,988 39,366 39,240
_______ _______ ________ _______
_______ _______ ________ _______
(1) Gives effect to a 3:2 stock split effective April 22, 1998.
(a) - In connection with the termination of its S corporation
status, the Company changed its method of accounting for tax reporting
purposes from the cash method to the accrual method, resulting in a
one time charge of $1,090 to income taxes.
(b) - Pro forma EPS as if the company had been taxed as a
C corporation for the period presented.
(c) - Represents the income taxes, as if the company had been a
C corporation for the periods presented.
SYNTEL, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands)
September 30, December 31,
1998 1997
____ ____
ASSETS
Current assets:
Cash and cash equivalents $55,772 $32,945
Accounts receivable, net 25,437 20,644
Advanced billings and other
current assets 11,127 6,897
_______ _______
Total current assets 92,336 60,486
Property and equipment 12,147 9,299
Less accumulated depreciation 6,397 5,060
_______ _______
Property and equipment, net 5,750 4,239
Deferred income taxes, noncurrent 817 507
_______ _______
$98,903 $65,232
_______ _______
_______ _______
LIABILITIES
Current liabilities:
Accrued payroll and related costs $15,531 $10,388
Other current liabilities 12,698 9,047
Deferred revenue 11,927 5,705
_______ _______
Total current liabilities 40,156 25,140
Income taxes payable -- 507
_______ _______
Total liabilities 40,156 25,647
SHAREHOLDERS' EQUITY
Total shareholders' equity 58,747 39,585
_______ _______
Total liabilities and
shareholders' equity $98,903 $65,232
_______ _______
_______ _______ |
