Syntel Reports Fourth Quarter 2012 Financial Results

TROY -- Syntel, Inc. (Nasdaq:SYNT), a global IT services and business process outsourcing company, Monday announced financial results for the fourth quarter and full year ended Dec. 31.

Syntel's revenue for the fourth quarter increased 9 percent to $187.8 million from $172.4 million in the same quarter of 2011.

Net income for the fourth quarter was $49.9 million or $1.19 per diluted share, compared to $44 million or $1.05 per diluted share in the prior-year period.

For the full year, revenue rose 13 percent to $723.9 million, from $642.4 million a year earlier.

Net income for the year was $185.5 million compared to $122.9 million in 2011. Earnings per share for 2012 increased 50.7 percnet to $4.44 per diluted share from $2.94 per diluted share in 2011. Year-over-year margins and earnings were impacted by currency fluctuations, wage increases, and costs associated with investments in hiring and infrastructure, among other factors.

During the fourth quarter, applications outsourcing accounted for 76 percent of total revenue, with knowledge process outsourcing at 15 percent, e-business contributing 7 percent and 'TeamSourcing' at 2 percent.

During 2012, Syntel spent $32.3 million in capital expenditures, largely in support of campus infrastructure, paid $106.2 million in regular and special dividends ($2.55 per share), and finished the year with cash and short-term investments of $421.3 million. The company added 19 new clients during the year and ended 2012 with 21,407 employees globally, up 10 percent from a year earlier.

"Our fourth quarter results reflect solid execution in a rapidly evolving business environment," said Syntel CEO and President Prashant Ranade. "While we faced some challenges this quarter, healthy growth in our recurring revenue businesses and improving business efficiency helped us navigate through them. We will maintain our customer centricity and drive growth in the verticals we serve with our domain-led solutions. We are optimistic about the opportunities before us, given our positioning within the end markets we serve and our high-quality customer relationships. We continue to see an expanding role for global delivery in the years ahead and plan to invest in our capabilities to provide innovative solutions, which will help us garner growth that meets or exceeds overall market growth."

Based on current visibility levels and an exchange rate assumption of 53 Indian Rupees to the dollar, the company currently expects 2013 revenue of $780 million to $810 million and EPS in the range of $4.15 to $4.45.

To listen to a replay of the conference call discussing these results. visit http://investor.syntelinc.com or call (855) 859-2056 in the United States or (404) 537-3406 internationally and entering the pass code 98221987.