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 SystemsSince 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 MeasuresEPAM 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
SUBSIDIARIESReconciliations 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-Saltz267.978.7688,
danielle_ruess-saltz@epam.comFor investor relations, contact: David
Straubedavid_straube@epam.com
EPAM Systems (NYSE:EPAM)
Historical Stock Chart
From Mar 2024 to Apr 2024
EPAM Systems (NYSE:EPAM)
Historical Stock Chart
From Apr 2023 to Apr 2024