Satyam
Announcement posted by Satyam 21 Apr 2008
Business Outlook
§ For fiscal 2009, under US GAAP, revenue is expected to be between US$ 2.65 bn and US$ 2.69 bn, implying a growth rate of 24.0% to 26.0% over fiscal 2008. Basic earning per ADS for fiscal 2009 is expected to be between US$ 1.44 and US$ 1.47, implying a growth rate of 15.2 % - 17.6 % over fiscal 2008.
§ Corresponding revenue under Indian GAAP consolidated is expected to be between Rs 10,500 crore and Rs 10,670 crore, implying a growth rate of 23.9 % and 25.9 % over fiscal 2008. EPS for the full year is expected to be between Rs 29.54 to Rs 30.04, implying a growth rate of 17 % to 19%.
§ For Q1 FY 2009, under US GAAP, revenue is expected to be between US$ 631.7 mn and US$ 634.8 mn, implying a growth rate of 3 % to 3.5 %. Basic earning per ADS for the quarter is expected to be US$ 0.38, implying a growth rate of 11.8%.
§ For Q1 FY 2009, under Indian GAAP consolidated, corresponding revenue is expected to be between Rs 2,500 crore and Rs 2,512.5 crore, implying a growth rate of 3.5 % and 4.0 %; EPS for the quarter is expected to be between Rs 7.64 to Rs 7.68, implying a growth rate of 9.7% to 10.2%.
Consolidated Indian GAAP Highlights
Q4 FY08
§ Revenue was Rs 2416.02 crore; a YoY increase of 35.8% and a sequential increase of 10.0%
§ Net Profit after Tax was Rs 466.85 crore; a YoY increase of 18.6% and a sequential increase of 7.7%
§ EPS for Q4 was Rs 6.97; a YoY increase of 16.6% and a sequential increase of 7.6%.
§ EBITDA margin for the quarter was 22.79%
FY 2008
§ Revenue was Rs 8473.49 crore; a growth of 30.7% over fiscal 2007
§ Net profit after tax was Rs 1687.89 crore; a growth of 20.2% over fiscal 2007
§ EPS at Rs 25.24 grew by 17.7% over FY 2007
§ EBITDA margin for the year was 21.65%.
US GAAP Highlights
Q4 FY08
§ Revenue was US$ 613 mn; up 49.1 % YoY and 9.0% sequentially.
§ Net Income was $ 112 mn; YoY increase of 30.1% and a sequential increase of 2.4%.
§ Basic earning per ADS for the quarter was US$ 0.34; increase of 30.8% YoY and up 3.03% sequentially.
§ Operating margins (EBIT) for the quarter was 19.75%.
FY 2008
§ Revenue was US$ 2,138 mn; a growth of 46.3%.
§ Net Income was US$ 417 mn; a growth of 39.7%.
§ Basic earning per ADS for fiscal 2008 was US$ 1.25; an increase of 37.4% over fiscal 2007.
§ Operating margins (EBIT) for the year was at 19.12%.
“We are proud of our exceptional performance in FY08; our growth was excellent, and we expanded our services, industry capabilities, and regional presence. This progress reflects the pride we take in our uncommon ideas and insights, and in our ability to apply them to implement solutions with speed and efficiency,” said Satyam Chairman and Founder B. Ramalinga Raju. “As a result, we are able to deliver end-to-end solutions, win more and larger engagements, and transform our clients’ businesses.”
KEY BUSINESS ACHIEVEMENTS
§ The parent company ended the quarter with 45,969 associates, an addition of 1,122 associates including 679 trainees for Q4 08. The number of associates including the subsidiaries and joint ventures stood at 51,127.
§ Attrition on a trailing twelve months basis fell to 13.09% from 13.11% in Q3. Annualised quarterly attrition for Q4 stood at 11.48%.
§ 32 customers including 4 Fortune 500 customers added.
“Because of economic challenges in major markets, we are increasing our focus on ways the organisation can sustain continued growth,” Raju said. “Diversification, with regard to industry, region, and service is one way to maintain success. However, we will also establish deeper and more valuable partnerships with our customers in FY09. This approach enables new kinds of business transformation.”
AWARDS & RECOGNITION
Satyam Earns Several Investor Relations Awards
The IR Global Rankings (“IRGR”), instituted by MZ Consult, (a global investor relations and financial communications firm), included Satyam in the five organisations it determined to have the “Best IR Website.” The awards recognise organisations that provide complete, accurate, and timely investor relations information. More than 160 companies were evaluated.
Satyam also earned the top ranking in the global technology industry (and in
Independent Research Firm Places Satyam among Oracle Implementation Leaders
An independent research organisation named Satyam among the world’s leaders in Oracle implementation capabilities. “The Forrester WaveTM: Oracle Implementation Providers, Q1, 2008 (March 2008)” places Satyam among the leaders of “an extremely well-qualified pack.” The report also noted that Satyam has approximately 5,800 resources aligned across verticals like airlines, financial services, higher education, life sciences, retail, telecom, and utilities. The provider has focused on building out industry-specific solutions and accelerators to reduce costs and speed time-to-market for its clients across a range of Oracle products.
Satyam BPO Earns Shared Services Honors
Satyam BPO won two prestigious Shared Services Excellence awards from the International Quality and Productivity Council. The company was honoured in
The
NOTES
$US2 billion highlights
It took Satyam 14 years to reach the US$1 billion mark. Only two years later, it eclipsed $2 billion.
Also during that two-year span:
- Quarterly attrition dropped from 22 percent (Q406) to 11.5 percent (Q408).
- Satyam added 22,042 associates, and 29 Fortune 500 clients.
- Two customers have achieved run rates of $100 million.
- Customers billed more than $1 million increased from 150 to 230 (53 percent).
- Customers billed more than $5 million have increased from 46 to 85 (85 percent).
- Customers billed more than $10 million in annual business have increased from 27 to 50 (85 percent.)
Joint venture buyout
Satyam also agreed to purchase Computer Associates’ half share of C&S a smart card and eLearning solutions provider the organisations founded as a joint venture in 2001. C&S serves public sector entities such as several state governments in
Satyam will pay CA $1.5 million for its 50 percent share, and rename the organisation C&S Pvt. Ltd.
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About Satyam
Satyam (NYSE: SAY), a leading global business and information technology services company, delivers consulting, systems integration, and outsourcing solutions to clients in 20* industries and 63* countries.
Satyam leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. The company’s 51,127* professionals excel in engineering and product development, supply chain management, client relationship management, business process quality, business intelligence, enterprise integration, and infrastructure management, among other key capabilities.
Satyam development and delivery centres in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve 654* clients, including more than one third of the Fortune 500. For more information, see www.satyam.com.
*As of March 31, 2008
This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended June 30, 2006, furnished to the United States Securities Exchange Commission on July 28, 2006 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at http://www.sec.gov.
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