Syntel reports 2% dip in revenue

NEW DELHI: Syntel, Inc., in its Q3 ,saw its revenues from applications outsourcing and e-Business (Syntel's two strategic focus areas), rising at 9 percent sequentially to $38.4 million compared to $35.3 million last quarter and $37.7 million in the prior year.

These two areas accounted for 91 percent of the total revenue in the third quarter compared to 89 percent in the second quarter and 87 percent for the prior-year quarter. Total revenue for the 2002 third quarter was $42.1 million as compared to $39.5 million, a rise of six percent, in the second quarter of 2002 and $43.3 million in the year-ago quarter, a dip of two percent.

Net income for the third quarter was $8.7 million or $0.22 per diluted share compared to $6.3 million or $0.16 per diluted share in the second quarter of 2002 and $6.3 million or $0.16 per diluted share in the third quarter of 2001.

Keshav Murugesh, Syntel Chief Financial Officer, Syntel said, " We continue to expect the maturity of our recent client wins and the increased productivity of our recently upgraded sales force to build momentum over time. We also continue to invest in our infrastructure, to support the growth that we expect, as we look to hire additional consultants by year-end. Based on our performance till date and our enhanced visibility to the fourth quarter, we are revising up our guidance for 2002 revenues to the range of $162-$164 million and our EPS outlook to the range of $0.72-$0.74".