Cambridge, Mass. - Sapient (NASDAQ: SAPE), a leading business consulting and technology services firm, today announced financial results for its fourth quarter and year ended December 31, 2003.
Consolidated service revenues for the quarter ended December 31, 2003 were $51.8 million, a 16% increase from service revenues of $44.7 million for the third quarter of 2003, and a 24% increase from the fourth quarter of 2002. Gross revenues were $54.4 million for the three months ended December 31, 2003, which included $2.6 million of reimbursable expenses.
Net income for the fourth quarter of 2003 was $2.6 million, or $0.02 per diluted share (including a $1.4 million gain on the sale of an investment). This compared to a net income of $1.0 million, or $0.01 per diluted share (including restructuring and other related charges of $0.7 million and a $1.5 million gain on the sale of an investment), for the third quarter of 2003, and a loss from continuing operations of $20.9 million, or $0.17 per diluted share (including restructuring and other related charges of $12.6 million), for the fourth quarter of 2002. Additionally, Sapient ended the fourth quarter of 2003 with a cash and marketable investments balance of $161.2 million, which was ahead of guidance.
"We are pleased with the performance of our business in 2003, particularly the results we achieved over the last two quarters. Our growth in overall revenues and marked improvement in profits are a direct result of our unique value proposition, our long-standing client relationships, and the tremendous commitment of our people," said Jerry A. Greenberg, Sapient’s co-chairman and co-chief executive officer. "Our plans for 2004 focus on continuing growth in all areas of our business, increasing our revenues and profits, expanding our services to new and existing clients, and attracting and retaining great people."
2003 Highlights
- Sapient won assignments with many new and existing clients, including Bank of New York, BioLab, BP, Bridgeline Holdings, CareFirst BlueCross BlueShield, Cinergy, Citigroup, Enbridge Gas Distribution, Essent, Exelon, Freddie Mac, Harrah’s Entertainment, Hilton International, ISO New England, Janus, JetBlue Airways, the Massachusetts Institute of Technology, National City Bank, New York ISO, Nextel, Nissan, Opodo, Rock-Tenn, Rohm & Haas, Royal Mail, Sequent Energy, Sony Electronics, T-Online, Union Gas, University of Chicago Hospitals, the U.K. Government’s Office of the eEnvoy, the U.S. Marine Corps, the U.S. Navy, UPS, Verizon, Vodafone, and VW Credit.
- High client satisfaction has always been a cornerstone of Sapient's strategy. In 2003, client satisfaction scores reached their highest levels in the company's history.
- Sapient’s 2003 revenues outside of the United States grew 31%, led by business growth of 30% in Germany and 19% in the UK. In the United States, Energy Services grew by 65%, Technology and Communications grew by 36%, and Public Services grew by 28%.
- Sapient also realized continued revenue growth from multi-year agreements and outsourcing contracts, highlighted by its 94% year-over-year growth in application management services.
- In 2003, 54% of Sapient’s revenues came from engagements using the Global Distributed Delivery (GDD) model, up from 45% in 2002. GDD is an integrated onshore/offshore approach proven to deliver the value of offshore without the associated risks.
- Sapient helped the Massachusetts Institute of Technology to develop and deploy MIT OpenCourseWare, a groundbreaking content management and web-based publishing initiative, which earned the InfoWorld 100 Award as well as Microsoft’s 2003 Worldwide Internet Business Solution of the Year Award.
- New Media Age ranked Sapient as the #1 technology agency in the UK, highlighting Sapient’s innovative technology implementation and user-centric design skills.
- Consulting Magazine recognized Sapient in its "best consulting firms to work for" issue. Sapient was featured in several of the issue’s "best of" lists, including: leadership, understanding firm strategy and direction, lack of glass ceiling for women, and firms where creativity is encouraged.
Conference Call
Sapient will host a discussion of the fourth quarter and year-end results in a conference call today at 4:30 p.m. (ET), 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 January 29 at 7:30 p.m. (ET) through February 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 88206.
Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. Several factors could cause actual events to differ materially from those indicated. These factors include, without limitation, the continued acceptance of the Company’s services, as well as the Company’s ability to accurately set fees for and timely complete its current and future client projects, successfully manage risks associated with its international operations, effectively manage its growth and projects and continue attracting and retaining high quality employees, in addition to 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_29-01-04.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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