-----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, RZakmZdsjUbhlu29WZIVH9IPGe1Ky75GSAWMUi681cLk3/C5GQkGXKAQEa9ftdUx qU0VIO9sD1lY53wstFLpoQ== 0000950124-05-004351.txt : 20050721 0000950124-05-004351.hdr.sgml : 20050721 20050721102732 ACCESSION NUMBER: 0000950124-05-004351 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050721 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050721 DATE AS OF CHANGE: 20050721 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 SEC ACT: 1934 Act SEC FILE NUMBER: 000-22903 FILM NUMBER: 05965192 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 1 k96851e8vk.txt CURRENT REPORT, DATED JULY 21, 2005 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K 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 21, 2005 ------------------------------- 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 1 ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 21, 2005, Syntel, Inc. (the "Company") issued a press release announcing results of operations and related financial information for the second quarter ended June 30, 2005. A copy of the press release is attached to this Report as Exhibit 99.1. The information contained in this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except if the Company expressly states that such information is to be considered "filed" under the Exchange Act or incorporates it by specific reference in such filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits.
Exhibit Number ------- 99.1 Press Release dated July 21, 2005.
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 21, 2005 By /s/ Revathy Ashok -------------------------- -------------------------------------- Revathy Ashok, Chief Financial Officer 2 EXHIBIT INDEX
Exhibit No. Description 99.1 Press Release dated July 21, 2005.
3 EX-99.1 2 k96851exv99w1.txt PRESS RELEASE DATED JULY 21, 2005 EXHIBIT 99.1 SYNTEL REPORTS STRONG SECOND QUARTER FINANCIAL RESULTS Q2 HIGHLIGHTS: - -- Year-over-year revenue increase of 19.3% to $54.7M - -- EPS of $0.24 per diluted share - -- Headcount crossed 4,900 mark TROY, Mich., July 21, 2005 -- Syntel, Inc. (SYNT), a global information technology services firm, today announced record financial results for the second quarter, ended June 30, 2005. Syntel's total revenue for the second quarter increased 19.3 percent to $54.7 million, compared to $45.8 million in the prior-year period and eight percent sequentially from $50.7 million in the first quarter of 2005. The Company's gross margin was 40.5 percent in the second quarter of 2005, compared to 42.8 percent in the prior-year period and 41.4 percent in the first quarter of 2005. During the second quarter, Syntel's focus area of Applications Outsourcing accounted for 76.3 percent of total revenue, with e-Business contributing 14.4 percent, TeamSourcing at 7.1 percent, and Business Process Outsourcing (BPO) at 2.2 percent. Syntel's income from operations was 21.0 percent in the second quarter, compared to 23.5 percent in the prior-year quarter and 19.4 percent in the first quarter. Net income for the second quarter was $9.7 million or $0.24 per diluted share, compared to $9.4 million or $0.23 per diluted share in the prior-year period, and $9.0 million or $0.22 per diluted share in the first quarter of 2005. "Our aggressive investment program in the areas of people, process, infrastructure and new offerings is beginning to deliver the desired results, as evidenced by our strong quarter," said Syntel CEO Bharat Desai. "We will continue to build on this momentum by delivering world-class quality technology and business process services to Blue Chip customers globally." Syntel added four new corporate clients in the second quarter, started 115 new engagements, and signed two new "Hunting Licenses" or preferred partnership agreements. Global headcount grew to 4,920 in the second quarter of 2005, compared to 4,722 in the first quarter 2005. Syntel's financial position remains very strong. The Company ended the quarter with more than $114 million in cash and short-term investments. The Company remains debt free. UPDATED 2005 OUTLOOK Based on the second quarter results and current visibility levels, the Company expects 2005 revenue in the range of $214-$219 million and EPS between $0.92 and $1.01. 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 the call start time to register and download any necessary audio software. A replay will be available by dialing (800) 642-1687 and entering "6805950" from 1:00 p.m. on July 21, 2005 until midnight on July 28, 2005. International callers may dial (706) 645-9291 and enter the same pass code. ABOUT SYNTEL Syntel (NASDAQ: SYNT) is a leading global provider of custom outsourcing solutions in a broad spectrum of information technology and information technology-enabled services. The Company's vertical practices support the entire Design-Build-Operate-Optimize lifecycle of systems and processes for corporations in the Financial Services, Insurance, Retail, Health Care and Automotive industries. The first US-based firm to launch a Global Delivery Service to drive speed-to-market and quality advantages for its customers, Syntel now leverages this efficient model for the majority of its Global 2000 customers. Recently named one of Forbes Magazine's "Best 200 Small Companies in America," Syntel has more than 4,900 employees worldwide, is assessed at Level 5 of the SEI's CMMI, BS 7799-2:2002 as well as ISO 9001:2000 certified. To learn more, visit us at: www.syntelinc.com. SAFE HARBOR PROVISION This news release includes forward-looking statements, including with respect to the future level of business for Syntel, Inc. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors set forth in the Company's Annual Form 10-K document dated March 15, 2005. Factors that could cause results to differ materially from those set forth above include general trends and developments in the information technology industry, which is subject to rapid technological changes, and the Company's concentration of sales in a relatively small number of large customers, as well as intense competition in the information technology industry, which the Company believes will increase. Income Statement and Balance Sheet to follow. SYNTEL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS SIX MONTHS ENDED JUNE 30 ENDED JUNE 30 --------------------------- ---------------------------- 2005 2004 2005 2004 ----------- ----------- ------------ ----------- Net Revenues $ 54,677 $ 45,846 $ 105,409 $ 90,935 Cost of revenues 32,531 26,234 62,235 52,319 GROSS PROFIT 22,146 19,612 43,174 38,616 Selling, general and administrative expenses 10,682 8,822 21,847 17,661 ----------- ----------- ------------ ----------- Income from operations 11,464 10,790 21,327 20,955 Other income, principally interest 708 357 1,844 1,353 ----------- ----------- ------------ ----------- Income before income taxes 12,172 11,147 23,171 22,308 Provision for income taxes 2,486 1,742 4,491 3,581 ----------- ----------- ------------ ----------- Net income $ 9,686 $ 9,405 $ 18,680 $ 18,727 =========== =========== ============ =========== Dividend per share $ 0.06 $ 0.06 $ 1.62 $ 0.12 EARNING PER SHARE: Basic $ 0.24 $ 0.23 $ 0.46 $ 0.47 Diluted $ 0.24 $ 0.23 $ 0.46 $ 0.46 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: Basic 40,519 40,259 40,442 40,190 =========== =========== ============ =========== Diluted 40,570 40,510 40,548 40,562 =========== =========== ============ ===========
SYNTEL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
JUNE, 30 DECEMBER, 31 2005 2004 -------- ------------ ASSETS Current assets: Cash and cash equivalents $ 86,627 $109,142 Short term investments 27,718 58,899 Accounts receivable, net of allowances for doubtful accounts of $1,012 and $1,213 at June 30, 2005 and December 31, 2004, respectively 26,461 28,790 Revenue earned in excess of billings 9,992 4,390 Deferred income taxes and other current assets 9,583 5,891 -------- -------- Total current assets 160,381 207,112 Property and equipment 43,908 37,754 Less accumulated depreciation 23,424 21,290 -------- -------- Property and equipment, net 20,484 16,464 Goodwill 906 906 Deferred income taxes and other noncurrent assets 2,407 2,486 -------- -------- $184,178 $226,968 ======== ======== LIABILITIES Current liabilities: Accrued payroll and related costs $ 14,704 $ 13,963 Income taxes payable 9,312 6,290 Accounts payable and other current liabilities 10,860 10,842 Deferred revenue 3,648 5,231 -------- -------- Total current liabilities 38,524 36,326 SHAREHOLDERS' EQUITY Total shareholders' equity 145,654 190,642 -------- -------- Total liabilities and shareholders' equity $184,178 $226,968 ======== ========
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