-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R21ObxjOVA2SGa3WZINYGceV9Ri+Wcm2tlE+YzUnDUhOdMpN1WPXW3mMDRlC0XNx jwsPUmDnMd+gh6MGHf63lw== 0000950124-04-003343.txt : 20040723 0000950124-04-003343.hdr.sgml : 20040723 20040722121917 ACCESSION NUMBER: 0000950124-04-003343 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040722 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNTEL INC CENTRAL INDEX KEY: 0001040426 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROGRAMMING SERVICES [7371] IRS NUMBER: 382312018 STATE OF INCORPORATION: MI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-22903 FILM NUMBER: 04925958 BUSINESS ADDRESS: STREET 1: 525 EAST BIG BEAVER ROAD STREET 2: SUITE 300 CITY: TROY STATE: MI ZIP: 48083 BUSINESS PHONE: 2486193524 MAIL ADDRESS: STREET 1: 525 EAST BIG BEAVER ROAD STREET 2: SUITE 300 CITY: TROY STATE: MI ZIP: 48083 8-K/A 1 k86976a1e8vkza.txt AMENDMENT #1 TO FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) July 22, 2004 -------------------------------- Syntel, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Michigan - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 0-22903 38-2312018 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 525 E. Big Beaver Road, Suite 300, Troy, Michigan 48083 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (248) 619-2800 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 1 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. This amends the Current Report on Form 8-K dated July 22, 2004 by adding two entries to the "Dividend per share" line item on the Consolidated Statement of Income that were inadvertently excluded. (c) Exhibits. Exhibit Number 99.1 Press Release dated July 22, 2004. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Syntel, Inc. ---------------------------------- (Registrant) Date July 22, 2004 By /s/ Keshav Murugesh ----------------------------- ------------------------------- Keshav Murugesh, Chief Financial Officer 2 EXHIBIT INDEX Exhibit No. Description 99.1 Press Release dated July 22, 2004. EX-99.1 2 k86976a1exv99w1.txt PRESS RELEASE DATED JULY 22, 2004 EXHIBIT 99.1 Syntel Reports Results for Second Quarter 2004 Second Quarter Highlights: - Revenue of $45.8M - Gross margin of 42.8% - EPS of $0.23 per diluted share - Cash and Marketable Securities of $149.4M TROY, Mich. -- July 22, 2004--Syntel, Inc., a global information technology services firm, today announced financial results for the second quarter ended June 30, 2004. Syntel's total revenue for the second quarter was $45.8 million, compared to $43.9 million in the prior-year period and $45.1 million in the first quarter of 2004. The gross margin was 42.8 percent in the second quarter of 2004, compared to 45.0 percent in the prior-year period. Utilization levels were 76 percent in the second quarter, as compared to 83 percent in the prior-year quarter as hiring and training of resources continued. The gross margin was 42.1 percent in the first quarter of 2004. During the second quarter, Syntel's core focus area of Applications Outsourcing accounted for 74.9 percent of total revenue, with e-Business contributing 17.5 percent, Team Sourcing at 6.7 percent and Business Process Outsourcing (BPO) just below one percent. The Company's Selling General and Administrative (SGA) expenses were 19.2 percent in the second quarter of 2004, compared to 14.8 percent in the prior-year period and 19.6 percent in the first quarter of 2004. As previously reported during the second quarter of 2003, the Company had reversed $0.8 million of accruals related to overdue debts and released reserves of $0.5 million relating to legal costs. Syntel's income from operations was 23.5 percent in the second quarter, compared to 30.2 percent in the prior-year period and 22.5 percent in the first quarter of 2004. Syntel's income tax rate was 15.6 percent in the second quarter of 2004, compared to 27.1 percent in the prior-year period and 16.5 percent in the first quarter of 2004. As discussed in the previous quarter, the tax rate continues to be positively impacted by the combined effects of offshore transition and reduced onsite profitability. In addition, during the second quarter of 2004, the provision for income tax was reduced by an R&D tax credit which had a positive impact of $0.5 million on taxes and a $0.01 impact on EPS. Net income for the second quarter was $9.4 million or $0.23 per diluted share, compared to $10.3 million or $0.25 per diluted share in the prior-year period, and $9.3 million or $0.23 per diluted share in the first quarter of 2004. During the second quarter of 2004, Syntel added six new corporate clients to its roster and launched 81 new engagements. At the end of the second quarter, Syntel's "hunting licenses" or preferred partnership agreements with Global 2000 corporations totaled 59. Global headcount grew to 4,054 in the second quarter of 2004, compared to 3,956 in the first quarter of 2004. Billable headcount in Q2 was 2,748. Utilization during the second quarter was 98 percent domestically and 63 percent offshore. Syntel's financial position and cash generation remain very strong. The Company ended the second quarter with $149.4 million in cash and marketable securities. The Company remains debt-free. REVISED OUTLOOK While Syntel is making progress in adding new corporate clients, enhancing our infrastructure and investing in sales & marketing activities, the timing of the revenue ramp continues to present a challenge. As a result, the Company is revising full-year guidance for 2004. The Company currently expects revenue in the range of $180M to $185M and EPS between $0.84 and $0.88 for the full-year 2004. SYNTEL TO HOST CONFERENCE CALL Syntel will discuss its second quarter performance today on a conference call at 10:00 a.m. (Eastern). To listen to the call, please dial (888) 689-9220. The call will also be broadcast live via the Internet at Syntel's web site: www.syntelinc.com under the "Investor Relations" section. Please go to the web site at least 15 minutes prior to call start time to register and download any necessary audio software. A replay will be made available by calling (800) 642-1687 and entering "8461251" beginning at 1 p.m. (Eastern) on July 22, 2004 through midnight (Eastern) on July 28, 2004. Balance sheet and income statement to follow. SYNTEL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (in thousands, except per share data)
3 MONTHS 6 MONTHS ENDED JUNE 30 ENDED JUNE 30 ------------------------ ------------------------ 2004 2003 2004 2003 ---- ---- ---- ---- Net Revenue $45,846 $43,915 $90,935 $87,993 Cost of revenues 26,234 24,156 52,319 49,236 ------- ------- ------- ------- Gross profit 19,612 19,759 38,616 38,757 Selling, general and administrative expenses 8,822 6,509 17,661 14,398 ------- ------- ------- ------- Income from operations 10,790 13,250 20,955 24,359 Other income, principally interest 357 845 1,353 1,460 ------- ------- ------- ------- Income before income taxes 11,147 14,095 22,308 25,819 Provision for income tax 1,742 3,821 3,581 7,168 ------- ------- ------- ------- Net income before loss from equity investment 9,405 10,274 18,727 18,651 Loss from equity investment 0 22 0 47 ------- ------- ------- ------- Net income $ 9,405 $10,252 $18,727 $18,604 ======= ======= ======= ======= Dividend per share $ 0.06 $ -- $ 0.12 $ -- EARNINGS PER SHARE Basic $ 0.23 $ 0.26 $ 0.47 $ 0.47 Diluted $ 0.23 $ 0.25 $ 0.46 $ 0.46 Weighted average common shares outstanding : Basic 40,259 39,470 40,190 39,358 ======= ======= ======= ======= Diluted 40,510 40,638 40,562 40,566 ======= ======= ======= =======
SYNTEL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (in thousands)
June, 30 December 31, 2004 2003 ---------- ------------- ASSETS Current assets: Cash and cash equivalents $100,183 $110,699 Short Term Investments, principally marketable securities 49,187 26,137 Accounts receivable, net of allowances of $827 and $809 at June 30, 2004 and December 31, 2003 respectively 28,394 25,828 Revenue earned in excess of billings 6,597 6,601 Deferred income taxes and other current assets 5,560 5,617 ---------- ------------- Total current assets 189,921 174,882 Property and equipment 27,921 25,617 Less Accumulated depreciation 19,618 18,502 ---------- ------------- Property and equipment, net 8,303 7,115 Goodwill 906 906 Deferred income taxes and other noncurrent assets 3,463 3,178 ---------- ------------- $202,593 $186,081 ========== ============= LIABILITIES Current liabilities: Accrued payroll and related costs $ 12,270 $ 11,851 Income taxes payable 7,887 6,507 Accounts payable and other current liabilities 9,752 9,861 Deferred revenue 3,203 4,456 ---------- ------------- Total liabilities 33,112 32,675 SHAREHOLDERS' EQUITY Total Shareholders' equity 169,481 153,406 ---------- ------------- Total liabilities and shareholders' equity $202,593 $186,081 ========== =============
-----END PRIVACY-ENHANCED MESSAGE-----