Satyam buys Singapore company for $5.6 mn

BANGALORE: Satyam Computer Services Ltd., India's fourth-largest software exporter, announced an acquisition of Singapore-based Knowledge Dynamics for $5.6 million in an all-cash deal.

The company specialises in business intelligence from data analysis, topping up a $39 million buyout of U.K.-based consultant Citisoft in the previous quarter.

Satyam reported that its quarterly net profit rose 16 percent, lagging market expectations as pay raises pinched into a revenue surge.

Satyam raised its earnings forecast a little for the year to March 2006 after industry leaders fell behind market expectations in the booming $17.2 billion service export industry powered by low-cost, English-speaking programmers.

Satyam said its consolidated net profit in the fiscal first quarter ended June 30 rose to Rs. 1.9 billion compared to Rs. 1.64 billion in the same period the previous year.

Quarterly revenue rose to Rs. 10.59 billion from 7.8 billion, above analysts' expectations of Rs. 10.37 billion, signalling that the drag on profits came from costs.

Satyam said its personnel costs rose by a hefty 45.3 percent to Rs. 6.39 billion.

Satyam added 31 clients in the latest quarter, and 1,341 staff, taking its total headcount to 20,505 people in the main computer services firm, while back-office service subsidiary Nipuna added 245 people to take its count to 1,612.

Satyam said it expected revenues in the fiscal second quarter to touch Rs. 11.11 billion to 11.16 billion.

The company raised its full-year earnings per share forecast to Rs. 27.22-27.44 or a 21.5-22.5 percent growth on the year, against an earlier estimate of 20-22 percent growth.