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

To: R. Bond who wrote (2380)	1/10/1999 1:10:00 PM
From: i_f	Respond to of 2761

Syntel looks for growth despite 1998 hits Troy-based tech firm's stock dives while profits explode article in todays detroit news detroitnews.com

To: R. Bond who wrote (2380)	1/10/1999 4:39:00 PM
From: av ram	Respond to of 2761

Thanks R. Bond. Have a nice weekend!

To: R. Bond who wrote (2380)	1/10/1999 5:24:00 PM
From: kaydee	Read Replies (2) \| Respond to of 2761

Bond, Thanks for the report. Before I used to kind of tend to ignore analyst reports. But in the last 6-10 months, I have begun to appreciate analyst reports. Their prediction may prove to be wrong, but whenever I read (BBRS, ML, Multex...) I tend to agree with them... Oh well, when is Desai going to show 30-40% sequential revenue growth? which should be easy given the industry scenario... The reason CATP/CHRZ etc were up on Friday... --------------------- NEW YORK -(Dow Jones)- Computer services companies generally had solid results in the seasonally slow fourth quarter but analysts aren't expecting blowout results. The final quarter of 1998 was marked by volatile stock prices in the sector, as the broader market's declines spurred concerns that computer services' clients would cut 1999 technology budgets. In addition, stock-price declines caused investors to believe that some of the computer services companies wouldn't be able to maintain their growth because so much of it is dependent on acquisitions. Despite the stock drops, most of the companies in the sector said they experienced strong demand for services in the fourth quarter, according to SBC Warburg Dillon Read LLC analyst Moshe Katri. Installing networks, implementing enterprise resource planning, or ERP, software, and integrating computers and software to allow companies to conduct commerce and communicate over the Internet were key growth areas. In the fall, analysts believed companies would cut their 1999 technology budgets, but now they believe that most corporations' tech budgets will stay on par with 1998's spending levels or increase slightly. BT Alex. Brown Inc. analyst Ed Caso said he anticipates that the slowest rate of growth in technology spending will be among large banks and brokerage firms that have suffered credit and trading losses during the market's tumult. Year 2000 services, which fueled strong growth at Keane Inc. (KEA) and Computer Horizons Corp. (CHRZ) this quarter, took a back seat to other areas. Year 2000 revenue is said to have peaked at both companies in the third quarter. BT Alex. Brown's Caso estimates year 2000 services will come in at $100 million, or 34.5% of Keane's fourth quarter revenue, which he estimates at $290 million, or 38 cents a share. In the year-ago period, Keane earned 20 cents on revenue of $207.6 million. Computer Horizon's year 2000 services, like Keane's, are also a shrinking portion of overall revenue. Caso said he expects year 2000 services to account for $37 million, or 25% of Computer Horizon's overall revenue of $145 million. While many computer services stocks hit 52-week lows during the fourth quarter, the impact on Ciber Inc. (CBR) was acute in that it idled the company's acquisition activity, most of which has been stock transactions. Adams Harkness & Hill analyst Kevin Yen estimated Ciber earned 23 cents in the quarter on revenue of $174.8 million, 60% of which came from staffing. In the year-ago quarter - which is Ciber's second fiscal quarter - the company earned 16 cents, excluding three cents of merger costs, on revenue of $141.7 million. For Cambridge Technology Partners Inc. (CATP) - one of the biggest third-quarter disappointments - the fourth quarter was a transition period. Cambridge reorganized its former North American rapid application development unit, RAD, to focus on eight key services areas. Weakness in the RAD unit had led to below-expectation third-quarter revenue growth. Merrill Lynch & Co. analyst Richard Park said he expects Cambridge Technology will post earnings of 25 cents on revenue of $162 million. In the year-ago quarter, the company earned 18 cents, excluding eight cents of business combination costs, on revenue of $128.8 million. At Electronic Data Systems Corp., the appointment of former Cable & Wireless PLC (CWP) Chief Executive Richard Brown as EDS' chairman and chief executive during the quarter was viewed as a sign that the company was embarking on a bold turnaround effort. Brown, who replaces retiring Chairman Les Alberthal and starts Jan. 15, has a reputation for revitalizing companies. Merrill Lynch & Co. analyst Stephen McClellan said he expects EDS will report earnings of 52 cents in its fourth quarter on revenue of $4.65 billion. The estimate excludes a two-cent charge for the severance package of Vice Chairman Gary Fernandes. In the year-ago period, EDS earned 62 cents on revenue of $4.23 billion. Computer Sciences Corp. (CSC) scored a multibillion contract during the December quarter - its third fiscal period - with the Internal Revenue Service. Analysts expect Computer Sciences to get $2 billion to $3 billion from the 15-year contract, which involves modernizing the IRS' computers. The contract was Computer Sciences' first significant win since 1997 when the company won a $3 billion contract with DuPont Co. (DD), according to Warburg Dillon Read's Katri. He said the IRS contract reinforces earnings estimates for the fiscal year ending March 2000. The contract also re-establishes CSC as a leading contender for global outsourcing awards, he said. BT Alex. Brown analyst Caso estimated Computer Horizons earned 38 cents in the fourth quarter. In the year-ago period, the company earned 28 cents, excluding a three cent non-recurring charge, on revenue of $99.6 million. Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. Just my 2 cents... DB