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

To: JDN who wrote (2309)	12/17/1998 2:05:00 PM
From: airborn	Read Replies (2) \| Respond to of 2761

Found over on the Yahoo Thread, can anyone respond to this question? WHY is it still dropping with Revenue growth like this? by: donuts25 4837 of 4837 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. SYNTEL INC. AND SUBSIDIARIES RESULTS OF OPERATIONS Revenues. The Company's revenues consist of fees derived from its IntelliSourcing and TeamSourcing business units. Revenues increased 29.8% to $43.6 million in the third quarter of 1998 from $33.6 million in the third quarter of 1997. Revenues for the first nine months of 1998 increased 44.4% to $128.4 million from $88.9 million for the first nine months of 1997. The revenue growth for both the three and nine month periods ended September 30, 1998 was primarily attributable to growth in existing engagements, the addition of new IntelliSourcing engagements, the acquisition of the consulting base from Waypointe Information Technologies Inc., and increased average bill rates. Worldwide billable headcount, including personnel employed by Syntel India, as of September 30, 1998 increased to 1,768 compared to 1,593 as of September 30, 1997.

To: JDN who wrote (2309)	12/18/1998 11:40:00 AM
From: Stephen	Read Replies (1) \| Respond to of 2761

Things look a tad brighter today !! Julie from IR phoned me back ... here's my impressions:- 1) They are comfortable with earnings ... all she could say (surprise). These are not likely to be reported (based upon last years release) until mid February ... a little further to wait for an earnings run sadly. 2) They have issued nothing that would warrant the drop in share price and are not aware of anything in the works. They have not lost any contracts nor has there been any business event that caught them by surprise. She mentioned that they have put a lot of bodies on their sales staff and my reply was that, from a perception standpoint, that was a double edged sword. It could be looked at that the business was dropping off and the increase in sales force was needed to get new contracts to replace that business. She told me that ramping up the sales force takes a while because of training. I didn't get any impression that the concern I raised was a valid one. 3) The accumulate rating started by Adam Harkness was issued after meeting with the company and discussing things going forward. Accumulate whilst hardly a ringing endorsement. is still apositive i believe. This was a few points ago I believe !! 3)We discussed the switch from Y2K emphasis to other areas like ERP ... and I agreed that whilst it was a important to make good strategic moves, other companies in the ERP area had reported uncertainty going forward (like Edwards). Julie replied that a good long term strategy was their main concern and recognised the softness other companies are seeing. So, the ship seems to be sailing along okay. I felt better for the call , and they are certainly getting a bunch of calls from investors so they are somewhat swamped. Good luck all Stephen