Ness Tech Q2 net up 37 p.c. YoY

CIOL Bureau
New Update

BANGALORE: Ness Technologies, Inc. a provider of IT services and solutions, today announced financial results for the second quarter ended June 30, 2005. Second quarter 2005 revenues reached $94.2 million, an increase of $20.3 million or 28 per cent from $73.9 million in the second quarter of 2004.


The Nasdaq-listed company's net income during this quarter increased to $4 million, up 37 per cent year-over-year, after expensing a $0.8 million (after tax) non-recurring non-cash stock compensation expense. Backlog increased to $418 million, up 22 per cent year-over year, Ness said.

The company's gross margin at 28 per cent declined sequentially due to the second quarter seasonality related to holidays. Based on the location of the end customer, non-Israeli revenues in the second quarter 2005 were 49 per cent of total revenues, up from 43 per cent in the first quarter.

Diluted net earnings per share for the second quarter 2005 were $0.11 compared to $0.12 a year ago. Excluding the non-cash stock compensation expense, diluted net EPS for the second quarter 2005 were $0.14.


Ness's cash and cash equivalent position was $92 million, as compared to $44 million last year and $109 million as of March 31, 2005. The sequential decrease was a result of investments in acquisitions the company made in Eastern Europe, and delays in payments caused by the late approval of the budget of the government of Israel.

For the third quarter 2005 Ness expects to generate revenues in the range of $95 million to $96 million and diluted net earnings per share of $0.17 to $0.18. The company upgraded its 2005 annual revenue guidance of $370 million to $375 million to the range of $376 million to $381 million based on expected revenues of Ness Romania.