FARMINGTON HILLS ? IT Consulting company Covansys reported a 144 percent increase in net earnings for the second quarter on a 15 percent gain in revenues.

Covansys reported net income of $11.2 million, up 144 percent from net income of $4.6 million in the second quarter of 2004 and up 39 percent from $8.1 million in the first quarter of 2005. Net income for the six months ended June 30 was $19.3 million, compared with net income of $1.7 million during the same period in 2004.

The company also reported revenue of $108.7 million in the second quarter compared with $94.1 million in the second quarter of 2004, an increase of more than 15 percent. Revenue increased by 4.2 percent over the prior quarter, when Covansys reported revenue of $104.3 million.

Revenues for the first six months were $213 million, an increase of 19 percent compared with revenues of $179.0 million during the same period in 2004.

Financial highlights include:

Net income available to common shareholders of $0.30 per share as

compared to $0.10 per share (on a diluted basis) in the same period last

year and net income available to common shareholders of $0.21 per share

(on a diluted basis) in the first quarter of 2005;

Cash and short-term investments of $80.4 million, up from $78.7 million

at the end of the first quarter of 2005;

Revenue growth of $10.7 million in India and Asia Pacific on a full

attribution basis to $38.7 million compared with $28.0 million in the

second quarter of 2004;

Repurchased approximately 400,000 shares of common stock for $4.8

million;

On July 5, Covansys eliminated all outstanding debt by repaying

its $17.5 million subordinated note related to the recapitalization.

“Covansys had a successful second quarter in which we generated solid revenue and earnings in both our commercial and public sector businesses while continuing to enhance our global delivery resources,?? said Raj Vattikuti, Covansys’ President and Chief Executive Officer. ?Our strong performance this quarter again validates our well-established “blended” delivery model, which combines our offshore expertise with dedicated local project management. Our delivery model combined with our technical prowess is giving us the competitive advantage we need to expand our business.”

Wall Street must have agreed. On Thursday, Covansys? stock price rose 7.59 percent to $15.60 a share, up $1.10 on the day.