NEWTOWN, Pa. - Saturday, March 31st 2012 [ME NewsWire]
Fourth Quarter revenues up 10.1% sequentially and 34.4% year-over-year;
Annual revenues of $334.5 Million, up 50.8% year-over-year led by strong growth out of Europe of 82.8%;
Provides guidance for 2012 revenue growth of between 23% and 25%
(BUSINESS WIRE)-- EPAM Systems, Inc. (NYSE: EPAM), a leading software
engineering and IT outsourcing (ITO) provider with development centers
across Central and Eastern Europe (CEE), today announced results for its
fiscal fourth quarter and full year ended December 31, 2011.
Fourth Quarter Highlights
Quarterly revenues increased to a record $95.1 million, up 34.4% compared to the year-ago quarter and 10.1% sequentially
Quarterly diluted earnings per share (EPS) on a GAAP basis was $0.29, compared to $0.27 in the year-ago quarter
Quarterly, Non-GAAP diluted EPS was $0.30, compared to $0.31 in the year-ago quarter
Net headcount for IT professionals increased 30.2% to 6,968 as of December 31, 2011, from 5,350 as of December 31, 2010
Revenues for the fourth quarter of 2011 were $95.1 million, up 34.4% compared to $70.8 million in the fourth quarter of 2010.
Income from operations was $15.4 million, an increase of 20.1% compared
to $12.1 million in the fourth quarter of 2010. Non-GAAP income from
operations was $16.3 million, an increase of $2.0 million or 14.2%, from
$14.8 million in 2010. Net income was $12.4 million, or $0.29 per
diluted share, compared to $11.6 million, or $0.27 per diluted share in
the fourth quarter of 2010.
Non-GAAP net income was $13.8 million, resulting in non-GAAP diluted EPS
of $0.30, compared to $13.8 million, or non-GAAP diluted EPS of $0.31
in the fourth quarter of 2010. Reconciliations of non-GAAP financial
measures to operating results and diluted EPS are included at the end of
this release.
Full Year 2011 Highlights
Revenues increased 50.8% to a record $334.5 million from the previous year.
Diluted EPS was $0.63, compared to $0.79 in the previous year
Non-GAAP diluted EPS was $1.19, compared to $0.94 in the previous year
Net headcount for IT professionals increased 30.2% to 6,968 as of December 31, 2011
Revenue for 2011 increased to a record $334.5 million, up 50.8% from $221.8 million reported in 2010.
Income from operations for 2011 was $55.0 million, an increase of 67.8%
from the previous year. Operating margin increased 166 basis points to
16.4% from 14.8% in the previous year. Non-GAAP income from operation
was $60.9 million.
Net income for 2011 was $44.4 million, or $0.63 per diluted share,
compared to $28.3 million, or $0.79 per diluted share for 2010. Non-GAAP
net income was $53.9 million resulting in on-GAAP diluted EPS of $1.19.
This compares to non-GAAP net income of $35.5 million, or non-GAAP
diluted EPS of $0.94 in 2010. Reconciliations of non-GAAP financial
measures to GAAP operating results and diluted EPS are included at the
end of this release.
Arkadiy Dobkin, CEO and President of EPAM Systems said, “We are pleased
to have completed our initial public offering in February, and are
excited to share our results with you for our first quarter as a public
company. I would like to thank our entire staff, business partners and
everyone who helped make our IPO a success.”
“Despite the global macroeconomic uncertainty, 2011 was a very
successful year for EPAM as we delivered strong growth across our
targeted services areas, verticals and geographies. First, we benefited
from an increased reliance on offshore outsourcing in Europe, where we
remain well- positioned to capitalize on this rapidly growing trend. At
the same time we have been successfully converting from a highly
specialized software engineering shop that served mostly global leading
ISVs, into one of the preferred vendors in key and rapidly growing
vertical segments. In today’s challenging environment of yet another
massive technology conversion, companies are in search for reliable
partners with strong engineering heritage and proven hands-on expertise
in such emerging trends as social enterprise and enterprise mobility,
and cloud and big data. Clients are expecting to receive real help and
guidance in delivering complex solutions and services cost-effectively
by utilizing a global delivery model but with quality they expected in
the past only from local specialized vendors and professional services
divisions of leading software product vendors.”
EPAM generated cash from operations of $26.3m in the fourth quarter of
2011, an increase of $7.6m generated over the fourth quarter of 2010. As
of December 31, 2011 EPAM had cash and cash equivalents of $88.8
million and $30.0 million of available borrowings under a revolving line
of credit, which expires on October 15, 2013. Currently, the Company
has no outstanding borrowings under its revolver.
First Quarter and Full Year 2012 Outlook
EPAM is providing the following guidance:
First quarter 2012 Revenue of between $92 million and $94 million,
representing a growth rate of 26% to 29% over 2011 revenue.
First quarter 2012 non-GAAP diluted EPS is expected to be in the
range of $0.28 to $0.30. These non-GAAP diluted EPS estimates are based
on 2012 fiscal year weighted average of 46.3 million diluted shares.
Full year 2012 Revenue expected to be between $411 million and $418
million, representing a growth rate of 23% to 25% over 2011 revenue.
On a full year basis, we expect non-GAAP net income growth to be in
the range of 10% - 12% with a tax rate of approximately 17%.
Conference Call Information
EPAM will hold a conference call to discuss its fourth quarter and full
year 2011 results at 8:00 a.m. Eastern this morning. A live webcast of
the call may be accessed over the Internet from the Company's Investor
Relations website at investors.epam.com. Participants should follow the
instructions provided on the website to download and install the
necessary audio applications. The conference call also is available by
dialing 877-941-2068 (domestic) or 1-480-629-9712 (international) and
entering passcode 4523859. Participants should ask for the EPAM Systems
fourth quarter and full year conference call.
A replay of the live conference call will be available approximately one
hour after the call. The replay will be available on the Company's
website or by dialing 1-877-870-5176 (domestic) or 1- 858-384-5517
(international) and entering the replay passcode 4523859. The telephonic
replay will be available until Tuesday, April 3, 2012.
About EPAM Systems
Established in 1993, EPAM Systems, Inc. (NYSE: EPAM) is a leading global
IT services provider with delivery centers throughout Central and
Eastern Europe. Headquartered in the United States, EPAM employs over
7,000 IT professionals and provides services to clients worldwide using a
global delivery model through its client management and delivery
operations in the United States, Belarus, Hungary, Russia, Ukraine, UK,
Germany, Kazakhstan, Sweden, Switzerland and Poland.
Adjusted (Non-GAAP) Financial Measures
EPAM supplements results reported in accordance with principles
generally accepted in the United States, referred to as GAAP, with
non-GAAP financial measures. Management believes these measures help
illustrate underlying trends in the company’s business and uses the
measures to establish budgets and operational goals, communicated
internally and externally, for managing the company’s business and
evaluating its performance. Management also believes these measures help
investors compare EPAM’s operating performance with its results in
prior periods and compare EPAM and similar companies. 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-off and recovery,
amortization of purchased intangible assets, goodwill impairment, legal
settlement, foreign exchange gains and losses, and M&A costs.
However, because EPAM’s reported non-GAAP financial measures are not
calculated according to GAAP, these measures are not comparable to GAAP
and may not necessarily be comparable to similarly described non-GAAP
measures reported by other companies within the company’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 its consolidated financial statements, which
are prepared according to GAAP.
Forward-Looking Statements
This press release may include statements that constitute
forward-looking statements within the meaning of the safe harbor
provisions Forward-looking statements are inherently subject to risks
and uncertainties, some of which cannot be predicted or quantified.
These risks and other factors include, but are not limited to, those
described under the caption “Risk Factors” in our most recent Annual
Report on Form 10-K and in our other filings with the Securities and
Exchange Commission. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “should,” “could,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“intend,” “potential,” “might,” “would,” “continue” or the negative of
these terms or other comparable terminology. Actual results, level of
activity, performance or achievements may differ materially from the
results, level of activity, performance or achievements expressed or
implied by the forward-looking statements, and these differences may be
material and adverse. 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
law.
To view the full report and tables please click here.
Contacts
EPAM Systems, Inc.
Ilya Cantor, +1-267-759-9000 x64588
Chief Financial Officer
investor_relations@epam.com
