Press release from Business Wire India
Source: Sapient
Friday, August 06, 2010 03:14 PM IST (09:44 AM GMT)
Editors: General: Consumer interest, Economy; Business: Banking & financial services, Business services, Financial Analyst, Information technology, Stock exchanges; Technology
--------------------------------------------------
Sapient Reports Second Quarter 2010 Results
Service Revenues Top $200 Million, Up 36% Year Over Year; Second Quarter Non-GAAP Operating Margin of 9.9%
New Delhi, Delhi, India, Friday, August 06, 2010 -- (Business Wire India) -- Sapient (NASDAQ: SAPE) today reported the following financial results for the second quarter ended June 30, 2010:
. Service revenues were $200.4 million compared to $147.5 million in the second quarter of 2009, an increase of 36%. Sequentially, service revenues were up $17.2 million, or 9%, from $183.2 million in the first quarter of 2010. On a constant currency basis, revenues increased 36% over the second quarter of 2009 and 11% sequentially.
. GAAP income from operations was $12.9 million, or 6.4% of service revenues, up 52% from $8.5 million, or 5.7% of service revenues, reported in the second quarter of 2009.
. Non-GAAP income from operations was $19.8 million, or 9.9% of service revenues. This compared to $14.2 million, or 9.6% of service revenues, in the second quarter of 2009.
. GAAP diluted net income per share was $0.06, compared to $0.06 in the second quarter of 2009.
. Non-GAAP diluted net income per share was $0.09, compared to $0.08 in the second quarter of 2009.
"We're pleased with our strong results this quarter, particularly our continuing improvement in operating margins," said Sapient President and Chief Executive Officer Alan J. Herrick. "Our clients continue to recognize Sapient's unique offerings, resulting in strong demand across all segments of our business."
Added Karandeep Singh, Managing Director of Sapient India, a subsidiary of Sapient Corporation Inc: "With over half of Sapient's global workforce in India, Sapient India continues to grow in scale and operations, delivering great results for our clients here and globally. With expansion in business, we have accelerated hiring and invested heavily in training to bolster our India capabilities in the areas of business, marketing, and technology. We plan to continue to scale our global delivery operations and shared services in India to support Sapient's overall business growth and strategy."
The company generated cash from operations of $22.9 million in the second quarter of 2010, compared to $30.4 million in the second quarter of 2009. For the six months ended June 30, 2010, cash from operations was $16.8 million, compared to $0.9 million for the first half of 2009. As of June 30, 2010, the company had cash, cash equivalents and marketable securities of $171.9 million. Days sales outstanding was 69 days for the second quarter of 2010, down from 71 days in the first quarter of 2010 and from 75 days for the second quarter of 2009.
Outlook
Sapient management provided the following guidance:
. For the third quarter ending September 30, 2010, service revenues are expected to be $208 million or higher.
. Third quarter non-GAAP operating margin is expected to be 11% to 12%.
Webcast and Conference Call
Sapient will host a discussion of its second quarter results at 4:30 p.m. ET today, which will be broadcast live on the Internet. The dial-in information for the conference call is:
U.S.: (888) 679-8035
International: (617) 213-4848
Passcode: 58625273
Please use the following link to pre-register for the conference call:
https://www.theconferencingservice.com/prereg/key.process?key= P3BXQXBF9
Please use the following link to access the live webcast of this event as well as an archive of the webcast:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=65979&eventID=3226129
The link to the webcast will also be posted at:
http://www.sapient.com/about+us/Investors.htm.
In addition, a re-broadcast of the conference call will be available from August 5 at 7:30 p.m. ET through August 12 at 11:59 p.m. ET. The replay information is as follows:
U.S.: (888) 286-8010
International: (617) 801-6888
Passcode: 88701651
Adjusted (Non-GAAP) Financial Measures
Sapient provides non-GAAP financial measures to complement reported GAAP results. Management believes these measures help illustrate underlying trends in the company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the company's business and evaluating its performance. The company anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expense, restructuring and other related charges, amortization of purchased intangible assets, acquisition costs and other related charges, and income tax benefits or provisions resulting from changes in the valuation allowance. In addition, the company's results of operations may include a comparison of service revenues and operating expenses in constant currency terms, which excludes the effect of currency fluctuations between the U.S. dollar and the local functional currencies in countries where the company operates. The effect is excluded by translating the current period's local currency service revenues and operating expenses into U.S. dollars using the average local currency exchange rates that were in effect during the prior period of comparison. However, because the company's reported non-GAAP financial measures are not calculated according to GAAP, these measures are not comparable to GAAP and may not necessarily be comparable to similarly described non-GAAP measures reported by other companies within the company's industry. Consequently, Sapient's non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but, rather, should be considered together with its consolidated financial statements, which are prepared according to GAAP.
Safe Harbor Statement
This press release contains forward-looking statements - in particular, the financial guidance for the third quarter of 2010 - that involve a number of risks and uncertainties. Actual results could differ materially from management's expectations. A number of factors could cause actual events to differ materially from those indicated, including, without limitation: the continued acceptance of the company's services; a reduction in the demand for the company's services in light of the current economic environment; the company's ability to accurately set fees for and complete its current and future client projects on a timely basis, successfully manage risks associated with its international operations, manage its growth and projects effectively, successfully integrate and achieve anticipated benefits from acquisitions, and continue to attract and retain high-quality employees; and other risk factors set forth in the company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as filed with the SEC.
About Sapient
Sapient is a global services company that helps clients transform in the areas of business, marketing, and technology. The company operates three divisions that enable clients to gain a competitive advantage and succeed in an increasingly digital world. SapientNitro, Sapient Global Markets and Sapient Government Services fuse insight, creativity and technology to drive innovation and to help clients navigate complex business problems. Our approach is the subject of case studies used by MBA programs at Harvard and Yale. The company has operations in North America, Europe, and Asia-Pacific. For more information, visit www.sapient.com
CONTACT DETAILS
Neha Pathak, Sapient, +91 (124) 4167000, npathak@sapient.com
Pragya Goel, Gutenberg Communications, +91 9810486705, pragya@gutenbergpr.com
KEYWORDS
CONSUMER, ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, IT, STOCK EXCHANGES, TECHNOLOGY, SAPE.O
If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.
Submit your press release at http://www.businesswireindia.com
No comments:
Post a Comment