FY2008 Revenue Now Estimated at $2.1 Billion HYDERABAD, India, Jan.
21 /PRNewswire-FirstCall/ -- Satyam Computer Services Ltd.
(NYSE:SAY), a leading business and information technology services
provider, today announced the results of the company for the
quarter ended December 31, 2007 (Q3). Consolidated Indian GAAP
Highlights -- Revenue was Rs. 2195.56 crore; a year-over-year
increase of 32.2% and a sequential increase of 8.1%. -- Volume
growth for the quarter was 9.4%. -- Net Profit after Tax was Rs.
433.63 crore; a year-over-year increase of 28.6% and a sequential
increase of 6%. -- EPS was Rs. 6.48; a Year-over-year increase of
26.1% and a sequential increase of 5.9%. -- EBITDA margin for the
quarter was 21.46%. US GAAP Highlights -- Revenue was US$ 562.9
million; up 49.9% year-over-year and 10.5%, sequentially. -- Net
Income was US$109.7 million; a year-over-year increase of 54.3% and
a sequential increase of 7.7%. -- Basic earning per ADS for the
quarter was US$0.33, an increase of 50% year-over-year and 6.5%
sequentially. -- Operating margin (EBIT) was 19.04%. "We enjoyed a
strong third quarter. Several key strategies to enhance our
portfolio of capabilities and solidify our position as a leading
provider of integrated, end-to-end business transformation services
are bearing fruit," said B. Ramalinga Raju, Satyam's founder and
chairman. Other Highlights -- The company ended the quarter with
44,847 associates, an addition of 3,424. Total employees including
subsidiaries and joint ventures, is 49,199. -- Attrition, on a
trailing-12-month basis, fell to 13.1% from 13.9% in Q3. "The
highlight of the quarter was the continued improvement in all
operating parameters, which helped us post better than guided
performance," said Satyam Chief Financial Officer Srinivas
Vadlamani. "Increased productivity, resulting from higher
utilization, increased billing rates and offshore shift led to 164
bps improvements in margin." Business Outlook -- For FY08, under US
GAAP, revenue is expected to be between US$ 2119.2 million and US$
2122.1 million, implying a growth rate of 45.0% to 45.2% over FY07.
Basic earnings per ADS for FY08 is expected to be US$1.27, implying
a growth rate of 39.6% over FY07. -- Corresponding revenue growth
under Indian GAAP consolidated is expected to be between 29.0% and
29.2%. EPS for the full year is expected to be Rs. 25.50, implying
a growth rate of 18.90%. -- For Q4 FY08, under US GAAP, revenue is
expected to be between US$ 594.4 million and US$597.3 million,
implying a growth rate of 5.6% to 6.1%. Basic earning per ADS for
the quarter is expected to be US$ 0.36. -- For Q4 FY08, under
Indian GAAP consolidated, corresponding revenue growth rate is
expected to be between 5.3% and 5.8%; EPS for the quarter is
expected to be Rs. 7.23. Key Business Achievements Satyam added 32
new customers in the quarter, including eight Fortune 500
corporations. "Other third quarter highlights included revenue
growth across all verticals, complemented by similar performances
in our service offerings and regions," Raju said. "Our Retail,
Travel, and Logistics Practice, specifically, turned in a superior
performance, growing by 35 percent. Results such as these
demonstrate that our strategy to provide the full range of
services, quickly, effectively, and through the most advanced
delivery models is working well, and our customers notice the
difference." Some prominent customer additions included FIFA,
Federation Internationale de Football Association, a German IT
services provider and a subsidiary of one of the world's largest
media and entertainment conglomerates and the organization
responsible for public transportation in Greater London. The
world's largest steel manufacturer engaged Satyam to enhance its
Total Cost Optimization program. The team analyzed its global
plants to reduce expenditures, enhance knowledge management, and
capture best practices across plants and geographies. Satyam is
helping a Tier 1 global investment bank implement a new application
architecture to accommodate its front and back-office and data
management needs. The multi-site, multi-year transformational
program will begin in Asia and Europe before moving to the US.
Satyam is also a preferred supplier for all of the organization's
business lines. A global oil company engaged Satyam to develop a
logistics solution, facilitate on-boarding solution for
offshore-drilling platform personnel, and deliver IT services for
its Global Gas Division. A healthcare technologies manufacturer and
services provider hired Satyam for a critical value-engineering and
product design project. Satyam is providing mechanical, electrical,
safety, and reliability design services to transform the client's
business. A global manufacturer of pharmaceutical, diagnostic,
therapeutic, surgical, and biotechnology products engaged Satyam to
migrate an entire website into its private framework. Satyam signed
an agreement to help the organization responsible for most aspects
of Greater London's public transport system with a broad range of
IT services. Satyam is helping a German IT services company provide
IT solutions to its parent company, a global media conglomerate,
and to external customers. Satyam is providing an end-to-end
solution for the world's largest international multimedia news
agency. Satyam BPO In Q3, Nipuna changed its name to Satyam BPO
Services. The organization posted revenues of US$15.3 million, and
a net loss of US$2.4 million. The revenue guidance for FY08 is US$
61 million, which represents growth of 60% over the previous year.
In Q3, Satyam BPO signed two new customers. The organization also
won the prestigious and internationally recognized Golden Peacock
National Training Award for 2007, making it the first Indian BPO
company so honored. The award emphasizes "the five Ts," total
quality, transparency, trust, truthfulness, and training. Satyam
BPO was selected from 186 entries, a testament to the
organization's associate and leadership development, and its
commitment to growing leaders faster than the competition. Key Q3
Awards and Recognitions Satyam's B. Ramalinga Raju Named E&Y
Entrepreneur of the Year Satyam's Chairman B. Ramalinga Raju was
awarded the Ernst & Young Entrepreneur of the Year Award for
India. He was honored for both his business acumen and his efforts
to enhance the community. Satyam the Official IT Services Provider
to The World Cup Satyam has been selected as the official IT
Services Provider to the world's largest sporting event -the FIFA
World Cup-in 2010 (South Africa) and 2014 (Brazil). Satyam Honored
for 'Strengthening Customer Relationships' The IT Services
Marketing Association named Satyam's Customer Intimacy Marketing
and Communication Program the winner of its "Strengthening Customer
Relationships" category. The four-pronged approach-business,
technology, industry, and culture-beat out other finalists from our
peer group. Satyam Is Indian MAKE Award Winner Satyam was named one
of India's "Most Admired Knowledge Enterprises," and was presented
an award for this accomplishment by Shri Kapal Sibal, the country's
minister for science and technology. Satyam Wins Asian Corporate
Social Responsibility Award Satyam was honored in the Poverty
Alleviation category for its GramIT (Rural BPO) program, a key
initiative of the Byrraju Foundation, a non- government
organization founded by Satyam Chairman and Founder B. Ramalinga
Raju. The Byrraju Foundation is dedicated to rural transformation
and has dramatically enhanced the quality of life of more than 2
million people in 180 villages in India's Andhra Pradesh state by
providing healthcare, education, livelihoods, sanitation, and
drinking water. Black Book of Outsourcing Vendors Ranks Satyam IMS
13th in World Satyam's Infrastructure Management Practice secured
13th position among the Global Top 20 service providers in the
"Black Book of Outsourcing Vendors." Satyam ranked third for brand
image and marketing communication efforts and first for
infrastructure applications monitoring parameters. Satyam Wins
Pegasystems Partner Innovation Award for 2007 Satyam won the
Pegasystems Partner Innovation Award for helping the organization's
clients-financial institutions-comply with Anti-Money Laundering
(AML) statutes. The solution helps companies fight fraud and
financial crime, and remain compliant with increasingly stringent
BSA/AML/KYC regulations. NASSCOM 'Shortlists' Satyam's Business and
Delivery Model Satyam's business and delivery model for high-end
services made the short list of candidates for NASSCOM's IT
Innovation Award in 2007. The category was process innovation.
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 61* 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 49,199* 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 centers in the US, Canada, Brazil, the UK, Hungary, Egypt,
UAE, India, China, Malaysia, Singapore, and Australia serve 630*
clients, including more than one third of the Fortune 500. For more
information, see http://www.satyam.com/. *As of Dec. 31, 2007
Satyam Contacts For clarifications, write to us at Or contact our
global PR representatives at: India Vishwesh Iyer + 91-98200 53697
US Siobhan Aalders +1-212-880 5341, +1 347 387 0733 Europe Clare
Gibbins +44-20-7309 1037 Asia-Pacific Reshma Wad Jain, +65 6737
4844, +65 981 40507 Dan Bleakman, + 61 2 8281 3823 Safe Harbor 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 September 30, 2007,
furnished to the United States Securities Exchange Commission on
October 31, 2007 and the other reports filed with the Securities
Exchange Commission from time to time. These filings are available
at http://www.sec.gov/. This announcement is not an offer of
securities for sale in the United States. Securities may not be
offered or sold in the United States absent registration or an
exemption from registration. Any public offering of securities to
be made in the United States will be made by means of a prospectus
that may be obtained from Satyam and that will contain detailed
information about Satyam and its management, as well as financial
statements. DATASOURCE: Satyam Computer Services Ltd. CONTACT: For
clarifications: , or global PR representatives: India, Vishwesh
Iyer, + 91-98200-53697, ; US, Siobhan Aalders, +1-212-880 5341, or
+1-347-387-0733, ; Europe, Clare Gibbins, +44-20-7309-1037, ;
Asia-Pacific, Reshma Wad Jain, +65-6737-4844, or +65-981-40507, ,
Dan Bleakman, , + 61-2-8281-3823, all for Satyam Web site:
http://www.satyam.com/
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