-----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, SHt6tf94/cNk/hlDyR07XvILo1itW1jXJKDN7P51V/r2KqNMhFR3oicG3oIl0BTY q2VZddfJOAuet2FP/o+0kw== 0000950124-06-002196.txt : 20060425 0000950124-06-002196.hdr.sgml : 20060425 20060425084952 ACCESSION NUMBER: 0000950124-06-002196 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060425 DATE AS OF CHANGE: 20060425 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: 06776619 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 k04613e8vk.txt CURRENT REPORT DATED APRIL 25, 2006 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) April 25, 2006 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 follwing 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 April 25, 2006, Syntel, Inc. (the "Company") issued a press release announcing results of operations and related financial information for the first quarter ended March 31, 2006. 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. (d) Exhibits.
Exhibit Number - ------- 99.1 Press Release dated April 25, 2006.
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 April 25, 2006 By /s/ Daniel M. Moore ------------------------------------- Daniel M. Moore, Chief Administrative Officer 2 EXHIBIT INDEX
Exhibit No. Description - ----------- ----------- 99.1 Press Release dated April 25, 2006.
3 EX-99.1 2 k04613exv99w1.txt PRESS RELEASE DATED APRIL 25, 2006 EXHIBIT 99.1 SYNTEL REPORTS FIRST QUARTER 2006 FINANCIAL RESULTS HIGHLIGHTS - Period-over-period revenue increase of 25% to $63.5 million - EPS for Q1 was $0.29 per diluted share - Global headcount crosses 6,300 mark - Ending cash balance & short term investments of $113M TROY, Mich. - April 25, 2006 - Syntel, Inc. (SYNT), a global information technology services firm, today announced financial results for the first quarter, ended March 31, 2006. FIRST QUARTER 2006 FINANCIAL HIGHLIGHTS Syntel's total revenue for the first quarter increased more than 25 percent to $63.5 million, compared to $50.7 million in the prior-year period and two percent sequentially from $62.3 million in the fourth quarter of 2005. The Company's gross margin was 38.3 percent in the first quarter, compared to 41.4 percent in the prior-year period and 40.1 percent in the fourth quarter of 2005. During the first quarter, Syntel's focus area of Applications Outsourcing accounted for 73 percent of total revenue, with e-Business contributing 14 percent, TeamSourcing at 8 percent, and Business Process Outsourcing (BPO) at 5 percent. The Company's Selling, General and Administrative (SG&A) expenses were 16.7 percent in the first quarter of 2006, compared to 22.0 percent in the prior-year period and 20.1 percent in the fourth quarter of 2005. Syntel's income from operations was 21.6 percent in the first quarter, compared to 19.4 percent in the prior-year quarter and 20.0 percent in the fourth quarter of 2005. Syntel's global headcount grew four percent during the first quarter of 2006 to 6,357, as compared to 6,093 at the end of 2005. The Company finished the quarter with cash and short term investments of $113.2 million. Syntel added six new clients in the quarter and launched 151 new engagements. The Company added two new "Hunting Licenses" or preferred partnership agreements during the quarter, taking the total to 73 strategic relationships. OPERATIONAL HIGHLIGHTS "The market for the global delivery of IT services remains very dynamic," said Syntel Chairman and CEO Bharat Desai. "Our mature approach continues to be validated by our Global 1,000 customers and that, combined with our strategic investments in our People, Processes and Infrastructure, are positioning the company for continued success." UPDATED 2006 GUIDANCE Based on current visibility levels, the Company now expects 2006 revenue in the range of $255-$265 million and EPS between $1.03 to $1.07. SYNTEL TO HOST CONFERENCE CALL Syntel will discuss its first 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 "7334437" from 1:00 p.m. on April 25, 2006 until midnight on May 2, 2006. International callers may dial (706) 645-9291 and enter the same pass code. # # # SYNTEL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (IN THOUSANDS, EXCEPT PER SHARE DATA)
3 MONTHS ENDED MARCH 31 ----------------------- 2006 2005 ------- ------- Net Revenues $63,496 $50,732 Cost of revenues 39,162 29,704 ------- ------- Gross Profit 24,334 21,028 Selling, general and administrative expenses 10,598 11,165 ------- ------- Income from operations 13,736 9,863 Other income, principally interest 889 1,136 ------- ------- Income before income taxes 14,625 10,999 Provision for income taxes 2,570 2,005 ------- ------- Net (loss) / income $12,055 $ 8,994 ======= ======= Dividend Per Share : $ 0.06 $ 1.56 EARNINGS PER SHARE : Basic $ 0.30 $ 0.22 Diluted $ 0.29 $ 0.22 Weighted average common shares outstanding : Basic 40,696 40,366 ======= ======= Diluted 40,948 40,526 ======= =======
SYNTEL, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
MARCH, 31 DECEMBER, 31 2006 2005 --------- ------------ ASSETS Current assets: Cash and cash equivalents $ 85,880 $ 99,390 Short term investments 27,303 21,083 Accounts receivable, net of allowance for doubtful accounts of $2,575 and $2,575 at March 31, 2006 and December 31, 2005, respectively 30,680 27,907 Revenue earned in excess of billings 12,818 8,366 Deferred income taxes and other current assets 11,252 10,003 -------- -------- Total current assets 167,933 166,749 Property and equipment 57,119 54,690 Less accumulated depreciation and amortization 26,530 25,504 -------- -------- Property and equipment, net 30,589 29,186 Goodwill 906 906 Deferred income taxes and other noncurrent assets 3,415 1,320 -------- -------- $202,843 $198,161 ======== ======== LIABILITIES Current liabilities: Accrued payroll and related costs $ 14,544 $ 15,906 Income taxes payable 6,910 9,809 Accounts payable and other current liabilities 15,791 16,812 Deferred revenue 2,531 3,356 -------- -------- Total liabilities 39,776 45,883 SHAREHOLDERS' EQUITY Total shareholders' equity 163,067 152,278 -------- -------- Total liabilities and shareholders' equity $202,843 $198,161 ======== ========
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