Syntel Reports First Quarter 2018 Financial Results
19 Abril 2018 - 9:30AM
Highlights:
Syntel, Inc. (Nasdaq:SYNT), a leading global provider of integrated
information technology and knowledge process services, today
announced financial results for the first quarter, ended March 31,
2018.
First Quarter Financial
HighlightsSyntel's revenue for the first quarter increased
8.6 percent to $245.3 million from $225.9 million in the prior-year
period, and 2.3 percent from $239.8 million in the fourth quarter
of 2017. During the first quarter, Banking and Financial
Services accounted for 43.4 percent of total revenue, with Retail,
Logistics and Telecom at 18.4 percent, Healthcare and Life Sciences
at 18.2 percent, Insurance at 15.3 percent, and Manufacturing at
4.7 percent.
The Company's gross margin was 37.2 percent in
the first quarter, compared to 36.6 percent in the prior-year
period and 41.4 percent in the fourth quarter of 2017. Selling,
General and Administrative (SG&A) expenses were 11 percent of
revenue in the first quarter, compared to 13.4 percent in the
prior-year period and 12.1 percent in the previous quarter.
The first quarter income from operations was
26.2 percent of revenue as compared to 23.2 percent in the
prior-year period and 29.3 percent in the fourth quarter of 2017.
Net income for the first quarter was $45.6 million or $0.55 per
diluted share, compared to $38.4 million or $0.46 per diluted share
in the prior-year period and $42.4 million or $0.51 per diluted
share in the fourth quarter of 2017.
During Q1, Syntel spent $2.2 million in CAPEX
and finished the quarter with cash and short-term investments of
$72.5 million. Syntel ended the quarter with 22,571 employees
globally.
Operational Highlights"During
Q1, we continued to make progress in expanding across our top 50
client relationships," said Syntel CEO and President Rakesh Khanna.
"As a result of our client-facing efforts and strong service
offerings, the pace of deal closures has been healthy."
"We saw broader contribution across our industry
segments during the quarter, and are tackling each opportunity with
high-impact digital solutions as well as cutting-edge automation
and modernization services to support our customers' technology and
business initiatives," said Khanna. "The pace of change is
intensifying across each industry we serve. Our ability to help our
customers evolve and stay ahead of the competition will lead to our
mutual success.”
2018 Guidance Based on current
visibility levels and an exchange rate assumption of 65 Indian
rupees to the dollar, the Company currently expects 2018 revenue of
$920 million to $960 million and EPS in the range of $1.76 to
$1.96.
Syntel to Host Conference
CallSyntel will discuss its first quarter 2018 results
today on a conference call at 10:00 a.m. (EDT). To listen to the
call, please dial (877) 837-3915 in the US/Canada or (973) 638-3495
internationally. The call will also be broadcast live via the
Internet at Syntel's web site: investor.syntelinc.com. Please
access the site at least 15 minutes prior to the call to register
and download any necessary software. A replay will be available
until April 26, 2018 by dialing (855) 859-2056 and entering
“4089007." International callers may dial (404) 537-3406 and enter
the same passcode.
About SyntelSyntel
(Nasdaq:SYNT) is a leading global provider of integrated
information technology and knowledge process services. Syntel helps
global enterprises evolve the core by leveraging automation, scaled
agile and cloud platforms to build efficient application
development and management, testing and infrastructure solutions.
Syntel’s digital services enable companies to engage customers,
discover new insights through analytics, and create a more
connected enterprise through the internet of things. Syntel’s
"Customer for Life" philosophy builds collaborative partnerships
and creates long-term client value by investing in IP, solutions
and industry-focused delivery teams with deep domain knowledge.
To learn more, visit us at
www.syntelinc.com.
Safe Harbor ProvisionThis news
release may include forward-looking statements, including those
with respect to the future level of business for Syntel, Inc. These
statements are necessarily subject to risk and uncertainty. Actual
results could differ materially from those projected in these
forward-looking statements as a result of certain risk factors set
forth in the Company's Annual Report on Form 10-K for the year
ended December 31, 2017 or from other factors not currently
anticipated.
Contacts: North America/Europe: Jon Luebke, Syntel,
248/619-3503, jon_luebke@syntelinc.com
|
SYNTEL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME |
(UNAUDITED) |
(IN THOUSANDS, EXCEPT PER SHARE
DATA) |
|
|
|
|
THREE MONTHS ENDED |
|
MARCH 31, |
|
2018 |
2017 |
|
|
|
Net
revenues |
$ |
245,345 |
|
$ |
225,869 |
|
Cost of
revenues |
|
154,091 |
|
|
143,160 |
|
Gross profit |
|
91,254 |
|
|
82,709 |
|
Selling,
general and administrative expenses |
|
26,986 |
|
|
30,254 |
|
|
|
|
Income from operations |
|
64,268 |
|
|
52,455 |
|
|
|
|
Other income (expense): |
|
|
Interest
Expense |
|
(2,433 |
) |
|
(3,376 |
) |
Non-Service
component of post retirement benefit cost |
|
(302 |
) |
|
(324 |
) |
Other
income |
|
561 |
|
|
496 |
|
Other
income (expense), net |
|
(2,174 |
) |
|
(3,204 |
) |
|
|
|
Income
before provision for income taxes |
|
62,094 |
|
|
49,251 |
|
|
|
|
Income tax
expense |
|
16,455 |
|
|
10,871 |
|
|
|
|
Net
income |
$ |
45,639 |
|
$ |
38,380 |
|
|
|
|
Other
Comprehensive Income |
|
|
|
|
|
Foreign currency translation adjustments |
$ |
(2,457 |
) |
$ |
6,175 |
|
|
|
|
Gains on derivatives: |
|
|
Gains arising during period on cash flow hedges |
|
2,910 |
|
|
963 |
|
|
|
|
Unrealized gains on available-for-sale debt
securities: |
|
|
Unrealized holding gains arising during period |
|
384 |
|
|
131 |
|
Reclassification adjustment for gains included in net
income |
|
(60 |
) |
|
(80 |
) |
|
|
324 |
|
|
51 |
|
|
|
|
Defined benefit pension plans: |
|
|
Net Profit (Loss) arising during period |
|
(439 |
) |
|
6 |
|
Amortization of prior service cost included in net periodic
pension cost |
|
8 |
|
|
8 |
|
|
|
(431 |
) |
|
14 |
|
|
|
|
Other comprehensive income, before tax |
|
346 |
|
|
7,203 |
|
Income tax expenses related to Other Comprehensive Income |
|
(699 |
) |
|
(403 |
) |
Other comprehensive income (loss), net of
tax |
|
(353 |
) |
|
6,800 |
|
|
|
|
Comprehensive
Income |
$ |
45,286 |
|
$ |
45,180 |
|
|
|
|
EARNINGS PER SHARE: |
|
|
Basic |
$ |
0.55 |
|
$ |
0.46 |
|
Diluted |
$ |
0.55 |
|
$ |
0.46 |
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
Basic |
|
83,129 |
|
|
83,797 |
|
|
|
|
Diluted |
|
83,377 |
|
|
83,834 |
|
|
|
|
|
SYNTEL, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(UNAUDITED) |
(IN THOUSANDS) |
|
(Unaudited) |
|
(Audited) |
|
March 31, |
|
December 31, |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
41,373 |
|
$ |
95,994 |
|
Short term investments |
|
31,140 |
|
|
26,501 |
|
Accounts receivable, net of allowance for doubtful accounts of
$49 at March 31, 2018 and $ Nil at December 31, 2017. |
|
126,619 |
|
|
115,052 |
|
Revenue earned in excess of billings |
|
26,651 |
|
|
24,995 |
|
Other current assets |
|
36,006 |
|
|
29,484 |
|
|
|
|
|
Total current assets |
|
261,789 |
|
|
292,026 |
|
|
|
|
|
Property
and equipment |
|
238,248 |
|
|
240,948 |
|
Less accumulated depreciation and amortization |
|
134,993 |
|
|
134,650 |
|
|
|
|
|
Property and equipment, net |
|
103,255 |
|
|
106,298 |
|
|
|
|
|
Goodwill |
|
906 |
|
|
906 |
|
|
|
|
|
Non current
Term Deposits with Banks |
|
472 |
|
|
396 |
|
|
|
|
|
|
|
|
|
Deferred
income taxes and other non current assets |
|
86,022 |
|
|
84,090 |
|
|
|
|
|
TOTAL ASSETS |
$ |
452,444 |
|
$ |
483,716 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY/(DEFICIT) |
|
|
|
LIABILITIES |
|
|
|
Current
liabilities: |
|
|
|
Accrued payroll and related costs |
$ |
45,084 |
|
$ |
51,497 |
|
Income taxes payable |
|
32,810 |
|
|
21,100 |
|
Accounts payable and other current liabilities |
|
35,716 |
|
|
34,762 |
|
Deferred revenue |
|
2,965 |
|
|
3,240 |
|
Loans and borrowings |
|
26,117 |
|
|
24,268 |
|
|
|
|
|
Total current liabilities |
|
142,692 |
|
|
134,867 |
|
|
|
|
|
Deferred
income taxes and other non current liabilities |
|
28,688 |
|
|
27,325 |
|
Non Current
loans and borrowings |
|
246,997 |
|
|
334,446 |
|
|
|
|
|
TOTAL LIABILITIES |
|
418,377 |
|
|
496,638 |
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Total
shareholders' equity/(deficit) |
|
34,067 |
|
|
(12,922 |
) |
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY/(DEFICIT) |
$ |
452,444 |
|
$ |
483,716 |
|
|
|
|
|
Syntel, Inc. (delisted) (NASDAQ:SYNT)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Syntel, Inc. (delisted) (NASDAQ:SYNT)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024