BOSTON, Mass. — August 6, 2009 — Sapient (NASDAQ: SAPE) today reported the following financial results for the second quarter ended June 30, 2009:
· Service revenues were $147.5 million, compared to $165.8 million in the second quarter of 2008, a decrease of 11%. Sequentially, service revenues were up $5.1 million, or 4%, from $142.4 million in the first quarter of 2009. On a constant currency basis, revenues decreased 4% over the prior year’s quarter and increased 1% sequentially.
· GAAP income from operations was $8.5 million, or 5.7% of service revenues, down from the $12.2 million, or 7.3% of service revenues, reported in the second quarter of 2008. GAAP income from operations in the second quarter of 2009 reflects $1.0 million of acquisition costs related to the Nitro Group acquisition.
· Non-GAAP income from operations was $14.2 million, or 9.6% of service revenues (excluding stock-based compensation expense, restructuring and other related charges, amortization of purchased intangible assets , acquisition costs and other related charges). This compared to non-GAAP income from operations of $17.3 million, or 10.4% of service revenues, in the second quarter of 2008.
· GAAP diluted net income per share was $0.06, compared to $0.09 in the second quarter of 2008.
· Non-GAAP diluted net income per share was $0.10, compared to $0.13 in the second quarter of 2008.
“We’re pleased with our revenue growth and profitability this quarter, given the current economic environment,” said Sapient President and Chief Executive Officer Alan J. Herrick. “The opportunities we are seeing give us confidence in our ability to forecast continued growth.”
“We completed the acquisition of Nitro Group in early July and client reaction has been very favorable,” added Herrick. “Our combined value proposition includes integrated advertising, digital commerce, marketing technology and social media to help clients create superior brand experiences that drive business results.”
The Company generated cash from operations of $30.4 million in the second quarter of 2009, compared to $22.0 million of cash in the second quarter of 2008. As of June 30, 2009, the Company had cash, cash equivalents and marketable securities of $194.9 million. Days sales outstanding was 75 days for the second quarter of 2009 compared to 78 days in the first quarter of 2009 and 63 days for the second quarter of 2008.
Outlook
Sapient management provided the following guidance:
· For the third quarter ended September 30, 2009, service revenues are expected to be in the range of $159 to $163 million, including revenue related to the Nitro Group.
· Third quarter non-GAAP operating margin is expected to be 10% or higher.
Webcast and Conference Call
Sapient will host a discussion of its first quarter results at 4:30 p.m. (EDT) today, which will be broadcast live on the Internet. The dial-in information for the conference call is:
U.S.: (888) 713-4217
International: (617) 213-4869
Passcode: 31227574
Please use the following link to pre-register for the conference call:
https://www.theconferencingservice.com/prereg/key.process?key=PJU8DVQ4N
Please use the following link to access the live webcast of this event as well as an archive of the webcast:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=65979&eventID=2334598
The link to the webcast will also be posted at:
http://www.sapient.com/about+us/Investors.htm.