TROY ? IT services provider Syntel reported Thursday record income for the second quarter, lead by revenue from applications outsourcing. Syntel out sources a lot of its development in India.
Net income for the second quarter was a record $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 million or $0.22 per diluted share in the first quarter of 2005.
Syntel reported its 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. 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 at 2.2 percent.
“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 ended the quarter with more than $114 million in cash and short-term investments. The company remains debt free.
Based on the second quarter results and current visibility levels, the company expects 2005 revenue in the range of $214 million to $219 million and EPS between $0.92 and $1.01.
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