NESS TECHNOLOGIES |
NSTC |
| NESS TECHNOLOGIES (NSTC) |
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| NASDAQ:NSTC |
Last Trade: Thursday, August 05, 2010 @ 5:20:02 PM |
| Last Price: 4.30 |
Change: ($-0.04 -0.9217%) |
| Open: |
4.34 |
Prev. Close: |
4.34 |
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4.41 |
Low: |
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| 52-Week High: |
14.78 |
52-Week Low: |
8.382 |
| Bid: |
4.27 / 100 |
Ask: |
4.31 / 100 |
| Volume: |
144,143 |
Outstanding: |
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| Market cap: |
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| Click here for NESS TECHNOLOGIES NSTC stock quote and more press releases |
Ness Technologies Announces Record Second Quarter 2008 Financial Results
HACKENSACK, New Jersey, July 29 /PRNewswire-FirstCall/ -- Ness
Technologies, Inc. ( NSTC), a global provider of IT services and
solutions, today announced financial results for the quarter ended June 30,
2008.
Second Quarter 2008 Highlights:
- Revenues were an all-time record $170.6 million, up 36% year-over-year.
- Operating income was an all-time record $11.2 million, up 107%
year-over-year.
- Net income was $8.1 million, up 94% year-over-year.
- GAAP diluted net earnings per share was $0.21, compared to $0.11 in the
second quarter of 2007.
- Non-GAAP diluted net earnings per share was $0.25, compared to $0.13 in
the second quarter of 2007 (1).
- Operating cash flows for the quarter were a second quarter record $13.0
million.
- Backlog as of June 30, 2008 was a record $799 million, up 23% compared
to $650 million as of June 30, 2007.
"We had a great quarter, executing well on our strategy and setting
several new records, in what is normally a seasonally weak quarter for Ness,"
said Sachi Gerlitz, president and chief executive officer of Ness
Technologies. "Our Ness Europe and Ness Israel operations continued to
perform well, while our Software Product Labs business improved markedly from
first quarter. In this quarter, we also see the benefit from our increased
focus on high-margin business around the world. With continued backlog growth
and a strong sales pipeline, we remain optimistic about the future. "Second quarter did have some macroeconomic challenges, particularly in
terms of currency headwinds; despite this, we did well - through good
performance and efficient operations," said Ofer Segev, executive vice
president and chief financial officer. "We are particularly pleased about our
record second quarter cash flows from operations. Our balance sheet and
liquidity are strong, and we feel good about the future." Guidance For the full year 2008, Ness reiterates its guidance of GAAP diluted net
earnings per share in the range of $1.00 to $1.05, and increases its revenue
guidance to the range of $670 million to $695 million. The recently announced sale to SAP AG of the company's Israeli SAP sales
and distribution division did not negatively impact guidance, as Ness
anticipates that the future reduction in revenue and earnings will be offset
by other factors, including stronger than expected revenue growth. These
factors, as well as foreign exchange effects, account for the increase in
revenue guidance. In addition, Ness expects to recognize a gain of $0.18 to $0.23 per
diluted share in the third quarter, upon the closing of the sale of its
Israeli SAP sales and distribution division. Conference Call Details Sachi Gerlitz, president and chief executive officer of Ness
Technologies, and Ofer Segev, executive vice president and chief financial
officer, will also conduct a conference call to discuss the second quarter
2008 results. The call, which will be simultaneously webcast, will begin at
8:30 AM Eastern Time / 5:30 AM Pacific Time on Tuesday, July 29, 2008. To access the Ness Technologies second quarter 2008 earnings conference
call, participants in North America should dial 1-800-399-0427 and
international participants should dial +1-706-643-1624. A live audio webcast
of the conference call will be available on the investor relations page of
the Ness Technologies corporate web site at http://investor.ness.com. Please
visit the web site at least 15 minutes early to register for the
teleconference webcast and download any necessary audio software. A replay of
the call will be available on the web site approximately two hours after the
conference call is completed. About Ness Technologies Ness Technologies ( NSTC) is a global provider of end-to-end IT
services and solutions designed to help clients improve competitiveness and
efficiency. The Ness portfolio of solutions and services consists of software
product development, including both offshore and near-shore outsourcing;
system integration, application development and consulting; and software
distribution. With over 7,800 employees, Ness maintains operations in 18
countries, and partners with numerous software and hardware vendors
worldwide. For more information about Ness Technologies, visit
http://www.ness.com. Use of Non-GAAP Financial Information In addition to reporting financial results in accordance with generally
accepted accounting principles, or GAAP, Ness uses various non-GAAP measures
of net income and earnings per share, including adjustments from results
based on GAAP to exclude non-cash stock-based compensation expenses in
accordance with SFAS 123R and amortization of intangible assets, net of
taxes. Ness' management believes the non-GAAP financial information provided
in this release is useful to investors' understanding and assessment of Ness'
on-going core operations and prospects for the future. The presentation of
this non-GAAP financial information is not intended to be considered in
isolation or as a substitute for results prepared in accordance with GAAP.
Management uses both GAAP and non-GAAP information in evaluating and
operating business internally and as such has determined that it is important
to provide this information to investors. Forward Looking Statement This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements often are preceded by words such as "believes," "expects," "may,"
"anticipates," "plans," "intends," "assumes," "will" or similar expressions.
Forward-looking statements reflect management's current expectations, as of
the date of this press release, and involve certain risks and uncertainties.
Ness' actual results could differ materially from those anticipated in these
forward looking statements as a result of various factors. Some of the
factors that could cause future results to materially differ from the recent
results or those projected in forward-looking statements include the "Risk
Factors" described in Ness' Annual Report of Form 10-K filed with the
Securities and Exchange Commission on March 17, 2008. Ness is under no
obligation to, and expressly disclaims any obligation to, update or alter its
forward-looking statements, whether as a result of such changes, new
information, subsequent events or otherwise.
NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands (except per share data)
Three months Six months
ended ended
June 30, June 30,
2007 2008 2007 2008
(Unaudited) (Unaudited)
Revenues...................... ..$ 125,762 $ 170,586 $ 251,540 $ 330,318
Cost of
revenues..................... . ... 89,677 117,995 179,353 232,385
Gross
profit..............................36,085 52,591 72,187 97,933
Selling and
marketing............................9,293 14,538 18,765 27,746
General and
administrative..................... 21,367 26,817 41,281 48,922
Total operating
expenses.......................... 30,660 41,355 60,046 76,668
Operating
income........................... 5,425 11,236 12,141 21,265
Financial income (expenses),
net............................ (74) (1,032) 315 (2,448)
Other expense,
net....................................(62) - (56) -
Income before taxes on
income............................ 5,289 10,204 12,400 18,817
Taxes on
income............................ 1,126 2,114 2,522 3,833
Net
income........................... $ 4,163 $ 8,090 $ 9,878 $ 14,984
Basic net earnings per
share.............................. $ 0.11 $ 0.21 $ 0.25 $ 0.38
Diluted net earnings per
share.............................. $ 0.11 $ 0.21 $ 0.25 $ 0.38
Weighted average number of shares
(in thousands) used in computing basic
net earnings per
share...............................39,041 39,214 38,957 39,208
Weighted average number of shares
(in thousands) used in computing
diluted net earnings per
share...............................39,314 39,426 39,325 39,462
NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES
RECONCILIATION OF SUPPLEMENTAL FINANCIAL INFORMATION
U.S. dollars in thousands (except per share data)
Three months Six months
ended ended
June 30, June 30,
2007 2008 2007 2008
(Unaudited) (Unaudited)
GAAP net
income............................$ 4,163 $ 8,090 $ 9,878 $ 14,984
Stock-based
compensation..................... 228 648 604 1,539
Amortization of intangible
assets........................... 900 1,487 1,770 2,957
Taxes on stock-based
compensation and
amortization of intangible
assets........................... (192) (486) (360) (962)
Non-GAAP net
income............................$ 5,099 $ 9,739 $ 11,892 $ 18,518
GAAP diluted net earnings per
share.................. $ 0.11 $ 0.21 $ 0.25 $ 0.38
Stock-based
compensation.................... 0.01 0.02 0.01 0.04
Amortization of intangible
assets........................ 0.02 0.04 0.05 0.07
Taxes on stock-based compensation
and amortization of intangible
assets............................ (0.00) (0.01) (0.01) (0.02)
Non-GAAP diluted net earnings per
share............................ .$ 0.13 $ 0.25 $ 0.30 $ 0.47
Weighted average number of shares
(in thousands) used in computing
non-GAAP diluted net earnings
per share... 39,314 39,426 39,325 39,462
NESS TECHNOLOGIES, INC. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
U.S. dollars in thousands
Three months Six months
ended ended
June 30, June 30,
Segment Data: 2007 2008 2007 2008
(Unaudited) (Unaudited)
Revenues:
Ness North
America..........................$ 26,313 $ 30,595 $ 52,414 $ 57,662
Technologies & Systems Group
(TSG)............................. 13,212 14,277 27,365 30,815
Ness Europe 24,350 44,930 47,224 85,090
Ness Israel 49,169 52,034 99,769 103,336
Other 12,718 28,750 24,768 53,415
$ 125,762 $ 170,586 $ 251,540 $ 330,318
Operating Income (Loss):
Ness North America $ 2,126 $ 2,021 $ 4,129 $ 3,116
Technologies & Systems Group
(TSG)............................ 1,404 894 3,774 3,109
Ness Europe 1,737 4,491 3,188 8,974
Ness Israel 2,557 4,962 5,646 9,656
Other 815 2,184 1,408 1,972
Unallocated Expenses (3,214) (3,316) (6,004) (5,562)
$ 5,425 $ 11,236 $ 12,141 $ 21,265
Geographic Data:
R --------------------------------- (1) See "Use of Non-GAAP Financial Information" below for more
information regarding Ness' use of non-GAAP financial measures.
Ness Technologies media contact:
David Kanaan
USA: +1-888-244-4919
Intl: +972-3-540-8188
Email: media.int@ness.com
Ness Technologies investor contact:
Drew Wright
USA: +1-201-488-3262
Email: investor@ness.com
SOURCE Ness Technologies Inc
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