Service Revenues Up 8% over Q1 2011 Led by 17% Growth in SapientNitro
Sapient (NASDAQ: SAPE) today reported the following financial results for the first quarter ended March 31, 2012:
- Service revenues were $260.6 million compared to $241.3 million in the first quarter of 2011, an increase of $19.3 million or 8%. Sequentially, service revenues were slightly down from the fourth quarter of 2011. On a constant currency basis, revenues increased 8% over the first quarter of 2011 and were down slightly sequentially.
- GAAP income from operations was $16.1 million, or 6.2% of service revenues, compared to $18.5 million, or 7.7% of service revenues, reported in the first quarter of 2011.
- Non-GAAP income from operations was $24.9 million, or 9.6% of service revenues, compared to $25.8 million, or 10.7% of service revenues, reported in the first quarter of 2011.
- GAAP diluted net income per share was $0.07, compared to $0.09 in the first quarter of 2011.
- Non-GAAP diluted net income per share was $0.11, compared to $0.12 in the first quarter of 2011.
“While 2012 started modestly slower than we would have liked, we are seeing momentum across all areas of the business,” said Sapient President and Chief Executive Officer Alan J. Herrick. “We were pleased to see Sapient Global Markets stabilize in the quarter and have the opportunity to grow as we progress through the year. SapientNitro continues to post industry-leading growth rates and we’re confident about its unique position in the marketplace.”
The company used cash from operations of $13.5 million in the first quarter of 2012, compared to a use of $19.0 million in the first quarter of 2011. As of March 31, 2012, the company had cash, cash equivalents and marketable securities of $208.7 million. Days sales outstanding was 69 days for the first quarter of 2012, up from 63 days in the fourth quarter of 2011 and down from 73 days for the first quarter of 2011.
Sapient management provided the following guidance:
- For the quarter ending June 30, 2012, service revenues are expected to be in the range of $267 million to $277 million.
- Second quarter 2012 non-GAAP operating margin is expected to be 10% to 11.5%.