Syntel Reports Fourth Quarter 2012 Financial Results

Highlights:
  • Q4 revenue of $187.8M, up 9% from year-ago quarter, and 1% sequentially
  • Q4 EPS of $1.19 per diluted share, up 13% from year-ago quarter, but down 3% sequentially
  • Full year revenue increase of 13% to $723.9M
  • Full year EPS of $4.44 per diluted share
  • 2012 year-ending cash & short term investments of $421.3M
  • Global Headcount of 21,407 on December 31, 2012, up 10% versus prior year

TROY, Mich., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Syntel, Inc. (Nasdaq:SYNT), a global information technology services and Knowledge Process Outsourcing (KPO) company today announced financial results for the fourth quarter and full year, ended December 31, 2012.

Fourth Quarter Financial Highlights

Syntel's revenue for the fourth quarter increased nine percent to $187.8 million, compared to $172.4 million in the prior-year period, and increased one percent sequentially from $186.4 million in the third quarter of 2012. During the fourth quarter, Applications Outsourcing accounted for 76 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 15 percent, e-Business contributing seven percent and TeamSourcing at two percent.

The Company's gross margin was 45.2 percent in the fourth quarter, compared to 42.1 percent in the prior-year period and 45.5 percent in the third quarter of 2012. Selling, General and Administrative (SG&A) expenses were 15 percent of revenue in the fourth quarter, compared to 11.4 percent in the prior-year period and 15.6 percent in the previous quarter.

The fourth quarter income from operations was 30.2 percent of revenue as compared to 30.7 percent in the prior-year period and 29.9 percent in the third quarter. The sequential rise in operating margin primarily reflects the impact of currency-related balance sheet translations and, to a lesser extent, lower marketing costs.

Net income for the fourth quarter was $49.9 million or $1.19 per diluted share, compared to $44 million or $1.05 per diluted share in the prior-year period and net income of $51.5 million or $1.23 per diluted share in the third quarter of 2012.

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