Syntel Reports First Quarter 2013 Financial Results

Highlights:
  • Q1 revenue of $189.1M, up 11% from year-ago quarter and 1% sequentially
  • Q1 EPS of $1.11 per diluted share, up 14% from year-ago quarter
  • Q1 cash & short term investments of $438M
  • Global Headcount of 22,179 on March 31, 2013, up 13% versus prior year

TROY, Mich., April 18, 2013 (GLOBE NEWSWIRE) -- Syntel, Inc. (Nasdaq:SYNT), a global information technology services and Knowledge Process Outsourcing (KPO) firm, today announced financial results for the first quarter, ended March 31, 2013.

First Quarter Financial Highlights

Syntel's revenue for the first quarter increased 11 percent to $189.1 million from $170.7 million in the prior-year period, and increased one percent sequentially from $187.8 million in the fourth quarter of 2012. During the first quarter, Applications Outsourcing accounted for 76 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 16 percent, e-Business contributing six percent and TeamSourcing at two percent.

The Company's gross margin was 41.1 percent in the first quarter, compared to 41.8 percent in the prior-year period and 45.2 percent in the fourth quarter of 2012. Selling, General and Administrative (SG&A) expenses were 13.7 percent of revenue in the first quarter, compared to 15.8 percent in the prior-year period and 15 percent in the fourth quarter of 2012.

The first quarter income from operations was 27.4 percent of revenue as compared to 26.1 percent in the prior-year period and 30.2 percent in the fourth quarter of 2012. The sequential reduction in operating margin reflects advanced hiring, compensation increases, the impact of currency-related balance sheet translations, and the appreciation in the Indian rupee, among other factors.

Net income for the first quarter was $46.4 million or $1.11 per diluted share, compared to $40.7 million or $0.98 per diluted share in the prior-year period and net income of $49.9 million or $1.19 per diluted share in the fourth quarter of 2012.

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