Syntel Reports Fourth Quarter and Full Year 2013 Financial Results
- Q4 revenue of $223.3M, up 19% from year-ago quarter, and 6% sequentially
- Q4 EPS of $1.58 per diluted share, up 32% from year-ago quarter, and 11% sequentially
- Full year revenue increase of 14% to $824.8M
- Full year EPS of $5.24 per diluted share
- 2013 year-ending cash & short term investments of $668.9M
- Global Headcount of 23,652 on December 31, 2013, up 10% versus prior year
TROY, Mich., Feb. 13, 2014 (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, 2013.
Fourth Quarter Financial Highlights
Syntel's revenue for the fourth quarter increased 19 percent to $223.3 million, compared to $187.8 million in the prior-year period, and increased six percent sequentially from $209.9 million in the third quarter of 2013. During the fourth quarter, Applications Outsourcing accounted for 78 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 15 percent, e-Business contributing six percent and TeamSourcing at one percent.
The Company's gross margin was 47.1 percent in the fourth quarter, compared to 45.2 percent in the prior-year period and 46.6 percent in the third quarter of 2013. Selling, General and Administrative (SG&A) expenses were 13.3 percent of revenue in the fourth quarter, compared to 15 percent in the prior-year period and 10.7 percent in the previous quarter.
The fourth quarter income from operations was 33.7 percent of revenue as compared to 30.2 percent in the prior-year period and 35.9 percent in the third quarter. The sequential decline in operating margin primarily reflects the impact of currencyrelated balance sheet translations, and higher employee headcount and compensation expense.
Net income for the fourth quarter was $66.3 million or $1.58 per diluted share, compared to $49.9 million or $1.19 per diluted share in the prior-year period and net income of $59.4 million or $1.42 per diluted share in the third quarter of 2013.
Full Year 2013 Financial Highlights
Revenue for 2013 increased 14 percent to $824.8 million, from $723.9 million in 2012. The Company's 2013 operating margin was 32.4 percent, compared to 29.3 percent in 2012. Net income for the year was $219.7 million compared to $185.5 million in 2012. EPS for 2013 increased 18 percent to $5.24 per diluted share from $4.44 per diluted share in 2012.
During 2013, Syntel spent $20.5 million in CAPEX, largely in support of campus infrastructure, and finished the year with cash and short-term investments of $668.9 million. The Company added 23 new clients during the year and ended 2013 with 23,652 employees globally.
"I am pleased with the strong execution that drove our fourth quarter and full year results," said Syntel CEO and President Prashant Ranade. "We will build on these efforts in the coming year as we deepen the relationships we have with our valued customers and forge new relationships that will support our growth over the longer term."
"Syntel distinguishes itself on the strength and merit of our service capabilities, our domain expertise and our singular focus on serving customers," said Ranade. "Our flexible and collaborative approach allows us to deliver unique solutions and this makes us a desirable long-term partner."
"We will continue to invest in our company while fostering customer-centricity as we ready ourselves for future opportunities."
Based on current visibility levels and an exchange rate assumption of 62 Indian Rupees to the dollar, the Company currently expects 2014 revenue of $910 to $940 million and EPS in the range of $5.10 to $5.35.
Syntel to Host Conference Call
Syntel will discuss its fourth quarter and full year 2013 results today on a conference call at 10:00 a.m. (EST). 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 February 27, 2014 by dialing (855) 859-2056 and entering "88510738". International callers may dial (404) 537-3406 and enter the same passcode.