Syntel, Inc. (Nasdaq:SYNT), a global provider of digital transformation, information technology and knowledge process services to Global 2000 companies, today announced financial results for the fourth quarter and full year, ended December 31, 2015.
Fourth Quarter Financial Highlights
Syntel’s revenue for the fourth quarter increased eight percent to $254.6 million from $235.3 million in the prior-year period, and 0.4 percent from $253.6 million in the third quarter of 2015. During the fourth quarter, Banking and Financial Services accounted for 50.3 percent of total revenue, with Retail, Logistics and Telecom at 16.4 percent, Healthcare and Life Sciences at 16.4 percent, Insurance at 12.4 percent, and Manufacturing at 4.5 percent.
The Company’s gross margin was 41.8 percent in the fourth quarter, compared to 41.4 percent in the prior-year period and 42.4 percent in the third quarter of 2015. Selling, General and Administrative (SG&A) expenses were 11 percent of revenue in the fourth quarter, compared to 10.2 percent in the prior-year period and six percent in the previous quarter.
The fourth quarter income from operations was 30.8 percent of revenue as compared to 31.2 percent in the prior-year period and 36.5 percent in the third quarter.
Net income for the fourth quarter was $74.2 million or $0.88 per diluted share, compared to $70.7 million or $0.84 per diluted share in the prior-year period and net income of $77.7 million or $0.92 per diluted share in the third quarter of 2015.
Full Year 2015 Financial Highlights
Revenue for 2015 increased six percent to $968.6 million, from $911.4 million in 2014. The Company’s 2015 operating margin was 29.3 percent, compared to 29.4 percent in 2014. Net income for the year was $252.5 million compared to $249.7 million in 2014. EPS for 2015 increased to $3.00 per diluted share from $2.97 per diluted share in 2014.
During 2015, Syntel spent $17.0 million in CAPEX, largely in support of campus infrastructure, and finished the year with cash and short-term investments of $1.04 billion. The Company added 23 new clients during the year and ended 2015 with 24,537 employees globally.
“Despite interruptions to our operations in Chennai, our teams demonstrated Syntel’s unwavering commitment to our customers, reinforcing and strengthening relationships as the year concluded on a solid footing,” said Syntel CEO and President Nitin Rakesh.
“Customers’ interest in digital initiatives remains high and we are focused on helping them realize their goals while optimizing the investment required,” said Rakesh. “Our thought leadership in digital modernization powered by SyntBots recursive automation platform promises to help customers realize the true benefits of ‘going digital.'”
Based on current visibility levels and an exchange rate assumption of 68 Indian rupees to the dollar, the Company currently expects 2016 revenue of $1,025 million to $1,065
million and EPS in the range of $2.75 to $3.00.
Syntel to Host Conference Call
Syntel will discuss its fourth quarter 2015 results today on a conference call at 10:00 a.m. (EST). To listen to the call, please dial (877) 837-3915 in the US/Canada or (973) 638-3495 internationally. The call will also be broadcast live via the Internet at Syntel’s web site: investor.syntelinc.com. Please access the site at least 15 minutes prior to the call to register and download any necessary software. A replay will be available until February 25, 2016 by dialing (855) 859-2056 and entering “42543698”. International callers may dial (404) 537-3406 and enter the same passcode.