NEWTOWN, Pa., March 15, 2018 (GLOBE
NEWSWIRE) -- EPAM Systems, Inc. (NYSE:EPAM), a leading global
provider of digital platform engineering and software development
services, today announced its acquisition of Continuum, an
innovation design firm headquartered in Boston with studios in
Milan, Seoul, and Shanghai. Continuum partners with Fortune 500
clients in the healthcare, financial services, travel and
hospitality, and consumer products industries to deliver value
through four practices: Strategy, Physical/Digital Design,
Technology and Made Real Lab.
The acquisition strengthens EPAM's innovation
consulting capabilities and enhances existing digital and service
design practices by introducing a human-centered approach to
physical design and product development. Continuum's studios and
the Made Real Lab are unique spaces that enable teams to
collaborate throughout the entire iterative product development
process by combining advanced prototyping technologies including
mechanical, electrical and robotics engineering, together with
AR/VR experimentation tools.
"The addition of Continuum expands our global
presence in strategic markets in North America, Europe and Asia and
brings to EPAM a deeper and more transformational, human-centered
design approach, which will help us to better connect our
customers' physical and digital business," said Arkadiy
Dobkin, CEO & President, EPAM. "By introducing Continuum's
approach into our network of EPAM Garages, we further mature our
own innovation service offerings, while continuing to inspire and
develop our people."
"By combining our capabilities, we will
significantly improve our ability to turn innovative ideas, paired
with disruptive technologies, into practical and scalable business
solutions for our clients," said Gianfranco Zaccai, Founder of
Continuum. "Joining EPAM enables us to introduce world-class
innovation design and product development at scale to a Global 2000
client base, while bringing a comprehensive end-to-end offering to
our existing clients."
Based on the estimated contribution of this
acquisition, EPAM now expects revenue growth for full year 2018 to
be at least 26% reported, or at least 24% in constant currency,
after factoring in a 2% estimated currency tailwind, and GAAP EPS
for the full year to now be at least $3.36 and Non-GAAP diluted EPS
to now be at least $4.07. The Company's adjustments to its 2018
outlook relate solely to the impact of the Continuum
acquisition.
To learn more about EPAM's digital strategy and
experience design practice, visit us at
https://www.epam.com/what-we-do/design.
About EPAM Systems
Since 1993, EPAM Systems, Inc. (NYSE:EPAM) has leveraged its core
engineering expertise to become a leading global product
development and digital platform engineering services company.
Through its 'Engineering DNA' and innovative strategy, consulting,
and design capabilities, EPAM works in collaboration with its
customers to deliver innovative solutions that turn complex
business challenges into real business opportunities. EPAM's global
teams serve customers in over 25 countries across North America,
Europe, Asia, and Australia. EPAM is a recognized market leader
among independent research agencies and was ranked #12
in FORBES 25 Fastest Growing Public Tech Companies, as a top
information technology services company on FORTUNE'S 100
Fastest-Growing Companies, and as a top UK Digital Design
& Build Agency. Learn more
at http://www.epam.com/ and follow us on
Twitter @EPAMSYSTEMS and LinkedIn.
About Continuum
Continuum is a global innovation design firm. We design products,
services, and experiences that improve people's lives, in small and
large ways, while taking our clients' businesses into the future.
Our clients range from start-ups to Fortune 500 brands across the
healthcare, financial services, mobility, and consumer products
sectors. For over 35 years, Continuum has been recognized for
outstanding innovation and design for projects spanning from
medical device and consumer product development and design, to
customer experience design and innovation capability. Learn more at
http://www.continuumInnovation.com and follow us on Twitter
@_Continuum and LinkedIn.
Non-GAAP Financial
Measures
EPAM supplements results reported in accordance with United States
generally accepted accounting principles, referred to as GAAP, with
non-GAAP financial measures. Management believes these measures
help illustrate underlying trends in EPAM's business and uses the
measures to establish budgets and operational goals, communicate
internally and externally, for managing EPAM's business and
evaluating its performance. Management also believes these measures
help investors compare EPAM's operating performance with its
results in prior periods. EPAM anticipates that it will continue to
report both GAAP and certain non-GAAP financial measures in its
financial results, including non-GAAP results that exclude
stock-based compensation expense, write-offs and recoveries,
amortization of purchased intangible assets, goodwill impairment,
legal settlements, foreign exchange gains and losses,
acquisition-related costs, certain other one-time charges, the
impact of U.S. tax reform, excess tax benefits related to stock
compensation and the related effect on income taxes. Management
also compares operating results on a basis of "constant currency,"
which is also a non-GAAP financial measure. This measure excludes
the effect of foreign currency exchange rate fluctuations by
translating the current period revenues and expenses into U.S.
dollars at the weighted average exchange rates of the prior period
of comparison. Because EPAM's reported non-GAAP financial measures
are not calculated according to GAAP, these measures are not
comparable to GAAP and may not be comparable to similarly described
non-GAAP measures reported by other companies within EPAM's
industry. Consequently, EPAM's non-GAAP financial measures should
not be evaluated in isolation or supplant comparable GAAP measures,
but, rather, should be considered together with the information in
EPAM's consolidated financial statements, which are prepared in
accordance with GAAP.
Forward-Looking
Statements
This press release includes statements which may constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995,
the accuracy of which are necessarily subject to risks,
uncertainties, and assumptions as to future events that may not
prove to be accurate. Factors that could cause actual results to
differ materially from those expressed or implied include general
economic conditions and the factors discussed in our most recent
Annual Report on Form 10-K and other filings with the Securities
and Exchange Commission. EPAM undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities law.
EPAM SYSTEMS, INC.
AND SUBSIDIARIES
Reconciliations of Guidance Non-GAAP Measures to
Comparable GAAP Measures
(Unaudited)
The below guidance constitutes forward-looking
statements within the meaning of the federal securities laws and is
based on a number of assumptions that are subject to change and
many of which are outside the control of the Company. Actual
results may differ materially from the Company's expectations
depending on factors discussed in the Company's filings with the
Securities and Exchange Commission.
Reconciliation of revenue growth at constant
currency to revenue growth as reported under GAAP is presented in
the table below:
|
|
Full Year 2018 |
|
Revenue growth at constant currency (at least) (1) |
|
24 |
% |
|
Foreign
exchange rates impact |
|
2 |
% |
|
Revenue growth (at least) |
|
26 |
% |
|
-
Constant currency revenue results are calculated
by translating current period projected revenues in local currency
into U.S. dollars at the weighted average exchange rates of the
comparable prior period.
Reconciliation of GAAP to non-GAAP diluted
earnings per share guidance is presented in the table below:
|
|
Full Year 2018 |
|
GAAP diluted earnings per share (at least) |
$ |
3.36 |
|
|
Stock-based compensation expenses |
|
1.01 |
|
|
Included in cost of revenues |
|
0.46 |
|
|
Included in selling, general and administrative
expenses |
|
0.55 |
|
|
Amortization of purchased intangible assets |
|
0.14 |
|
|
Foreign
exchange loss |
|
0.12 |
|
|
Provision
for income taxes: |
|
|
|
Tax
effect on non-GAAP adjustments |
|
(0.28) |
|
|
Excess
tax benefits related to stock-based compensation |
|
(0.28) |
|
|
Non-GAAP diluted earnings per share (at least) |
$ |
4.07 |
|
|
For media, contact: Danielle Ruess-Saltz
267.978.7688, danielle_ruess-saltz@epam.com
For investor relations, contact: David Straube
david_straube@epam.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: EPAM Systems, Inc via Globenewswire
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