Cambridge, Mass. — Sapient (NASDAQ: SAPE), a leading business consulting and technology services firm, today announced financial results for its second quarter ended June 30, 2004.
Consolidated service revenues for the second quarter of 2004 were $64.5 million, representing a 9.5% increase from service revenues of $58.9 million for the first quarter of 2004, and a 45% increase from the second quarter of 2003. Gross revenues for the quarter were $68.0 million, which included approximately $3.5 million of reimbursable expenses.
Net income for the second quarter of 2004 was $5.7 million, or $0.04 per diluted share. This compared to a net income of $1.3 million, or $0.01 per diluted share, for the first quarter of 2004, and a net loss of $4.4 million, or $0.04 per diluted share, for the second quarter of 2003.
Consolidated service revenues for the first two quarters of 2004 were $123.3 million, a 40% increase from the first two quarters of 2003. Net income for the first two quarters of 2004 was $7.0 million, or $0.05 per diluted share. This compared to a loss of $8.5 million, or $0.07 per diluted share, for the first two quarters of 2003.
"Our second quarter performance was strong on all fronts, which is a tribute to our people’s dedication and commitment. Revenues were up substantially, client satisfaction and competitive win rates remained high, hiring and utilization rates increased, and net income and cash flow improved sharply,” said Jerry A. Greenberg, Sapient’s co-chairman and co-chief executive officer. “Additionally, we achieved an operating margin of 8%, which is nearly double the target that we set at the beginning of the quarter."
Second Quarter Highlights
- Sapient won assignments with new and existing clients, including The Bank of New York, BP, BT, Cinergy, DHL, Enbridge Distribution Inc., Harrah’s Entertainment, HP, ISO New England, Janus Capital Group, National City Bank, Nextel, Nissan North America, Scotiabank, Sony Electronics, T-Com, TD Securities, Union Gas, University of Chicago Hospitals, U.S. Department of Homeland Security, Vertex, and Vodafone Group Services Ltd.
- In response to increased demand for its services worldwide, Sapient expanded its operations in all geographies. Most recently, the company opened an office in Bangalore. The company’s New Delhi office has played a key role in leading the future of IT in India. With approximately 54% of Sapient’s billable staff in India, clients have the ability to receive the highest business value from its globally distributed delivery model.
- Together with MIT, Sapient won the prestigious Computerworld 21st Century Achievement Award for the most innovative IT solution in the field of academia. The award recognized Sapient for its role in helping MIT deliver the groundbreaking MIT OpenCourseWare, which makes MIT course content available to anyone, anywhere in the world.
Conference Call
Sapient will host a discussion of the second quarter results in a conference call today at 4:30 p.m. (ET), which will be broadcast live on the Internet. For webcast registration information, please go to http://www.sapient.com/earnings.htm. It is advisable to register at least 15 minutes prior to the call to download and install any necessary audio software. A re-broadcast of the call will be available from July 29 at 7:30 p.m. (ET) through August 5 at 11:59 p.m. (ET) by dialing 877-660-6853 (within the U.S.) or 201-612-7415 (outside the U.S.) and entering account number 1628 and conference ID 111540.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. There are a number of factors that could cause actual events to differ materially from those indicated. Such factors include, without limitation, the continued acceptance of the Company’s services, the Company’s ability to accurately set fees for and timely complete its current and future client projects, its ability to successfully manage risks associated with its international operations, its ability to manage its growth and projects effectively and its ability to continue to attract and retain high quality employees, as well as other factors set forth in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as filed with the SEC.
You may download the Consolidated Statements of Operations and Consolidated Balance Sheets in PDF format at http://www.sapient.com/pdfs/press_releases/sapient_charts_29-07-04.pdf.
About Sapient
Sapient is a leading business consulting and technology services firm that plans, designs, implements, and manages information technology to improve business performance for Global 2000 clients. Sapient was founded in 1991 based on a single promise: to deliver the right business results, on time and on budget. Sapient's fixed-price/fixed-time model, combined with industry, design, technology, and process expertise, provides clients with the highest business value at the lowest total cost of ownership. Headquartered in Cambridge, Massachusetts, Sapient has offices in Canada, Germany, India, the United Kingdom, and the United States. More information about Sapient can be found at www.sapient.com
Sapient is a registered service mark of Sapient Corporation.
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