* Year-over-year revenue increase of 19.3% to $54.7M
* EPS of $0.24 per diluted share
* Headcount crossed 4,900 mark
Syntel, Inc. (NASDAQ: SYNT - News), a global information technology services firm, today announced record financial results for the second quarter, ended June 30, 2005.
Syntel's total revenue for the second quarter increased 19.3 percent to $54.7 million, compared to $45.8 million in the prior-year period and eight percent sequentially from $50.7 million in the first quarter of 2005. The Company's gross margin was 40.5 percent in the second quarter of 2005, compared to 42.8 percent in the prior-year period and 41.4 percent in the first quarter of 2005.
During the second quarter, Syntel's focus area of Applications Outsourcing accounted for 76.3 percent of total revenue, with e-Business contributing 14.4 percent, TeamSourcing at 7.1 percent, and Business Process Outsourcing (BPO) at 2.2 percent.
Syntel's income from operations was 21.0 percent in the second quarter, compared to 23.5 percent in the prior-year quarter and 19.4 percent in the first quarter. Net income for the second quarter was $9.7 million or $0.24 per diluted share, compared to $9.4 million or $0.23 per diluted share in the prior-year period, and $9.0 million or $0.22 per diluted share in the first quarter of 2005.
"Our aggressive investment program in the areas of people, process, infrastructure and new offerings is beginning to deliver the desired results, as evidenced by our strong quarter," said Syntel CEO Bharat Desai. "We will continue to build on this momentum by delivering world-class quality technology and business process services to Blue Chip customers globally."
Syntel added four new corporate clients in the second quarter, started 115 new engagements, and signed two new "Hunting Licenses" or preferred partnership agreements. Global headcount grew to 4,920 in the second quarter of 2005, compared to 4,722 in the first quarter 2005.
Syntel's financial position remains very strong. The Company ended the quarter with more than $114 million in cash and short-term investments. The Company remains debt free.
Updated 2005 Outlook
Based on the second quarter results and current visibility levels, the Company expects 2005 revenue in the range of $214 to $219 million and EPS between $0.92 and $1.01.