Highlights:
- Q2 revenue of $228.3M, up 13% from year-ago quarter, 4% sequentially
- Q2 EPS of $1.41 per diluted share, up 24% from year-ago quarter, 2% sequentially
- Q2 cash & short term investments of $769.8M
- Global Headcount of 24,122 on June 30, 2014, up 5% versus prior year
Syntel, Inc. announced financial results for the second quarter, ended June 30, 2014.
Second Quarter Financial Highlights
Syntel's revenue for the second quarter increased 13 percent to $228.3 million, compared to $202.5 million in the prior-year period, and increased four percent sequentially from $219.5 million in the first quarter of 2014. During the second quarter, Banking and Financial Services accounted for 49 percent of total revenue, with Healthcare and Life Sciences at 17 percent, Retail, Logistics and Telecom at 16 percent, Insurance at 15 percent and Manufacturing at three percent.
The Company's gross margin was 39.2 percent in the second quarter, compared to 41.3 percent in the prior-year period and 43.7 percent in the first quarter of 2014. Selling, General and Administrative (SG&A) expenses were 11.5 percent of revenue in the second quarter, compared to 9.2 percent in the prior-year period and 14.7 percent in the previous quarter.
The second quarter income from operations was 27.7 percent of revenue as compared to 32 percent in the prior-year period and 29.1 percent in the first quarter. The sequential decline in operating margin primarily reflects the impact of immigration expenses and offshore wage increases, which was partially offset by the impact of currency-related balance sheet translations. In addition, the company recorded an out-of-period accounting adjustment during Q2 that lowered SG&A by $3 million. This one-time adjustment had no impact on revenue or gross margin.
Net income for the second quarter was $59.3 million or $1.41 per diluted share, compared to $47.5 million or $1.14 per diluted share in the prior-year period and net income of $58.1 million or $1.39 per diluted share in the first quarter of 2014.
During Q2, Syntel spent $4.3 million in CAPEX, largely in support of campus infrastructure, and finished the quarter with cash and short-term investments of $769.8 million. The Company ended the quarter with 24,122 employees globally.
To view an unabridged version of this press release, visit: http://investor.syntelinc.com/releasedetail.cfm?ReleaseID=860418
