Du är här

2014-04-30

EPAM Systems, Inc.: EPAM Reports Results for First Quarter 2014

First Quarter revenue is up 29% year-over-year and up 2% sequentially
Newtown, PA - April 30, 2014 - EPAM Systems, Inc. (NYSE: EPAM), a leading
provider of complex software engineering solutions and a leader in Central
and Eastern European IT services delivery, today announced results for its
quarter ended March 31, 2014.

First Quarter 2014 Highlights

----------------------------------------------------------------------------------
|· Revenues increased to $160.4 million, up 29.1% year-over-year, and up 1.8% |
| sequentially; |
|· GAAP income from operations was $21.9 million, an increase of 40.7% compared |
| to $15.5 million in the first quarter of 2013; |
|· Non-GAAP income from operations was $26.3 million, an increase of $7.4 |
| million, or 39.5%, from $18.8 million in the first quarter of 2013; |
|· Quarterly diluted earnings per share (EPS) on a GAAP basis was $0.35, up from |
| $0.27 in the year-ago quarter; |
|· Non-GAAP quarterly diluted EPS was $0.47, up 34.3% from $0.35 in the year-ago |
| quarter. |
----------------------------------------------------------------------------------
EPAM generated cash from operations of $16.2 million in the first quarter of
2014, an increase of $27.9 million from $11.7 million used in operations in
the first quarter of 2013.
Reconciliations of non-GAAP financial measures to operating results and
diluted EPS are included at the end of the release.
"I am pleased with the start of 2014." said Arkadiy Dobkin, CEO and President
of EPAM. "Our first quarter came in stronger than anticipated, allowing us to
continue to deliver industry-leading year-over-year growth, as well as
sequential quarterly growth."
Full Year and Second Quarter 2014 Outlook
For the full year 2014, based on current conditions, and including the impact
of the acquisitions of Netsoft and Jointech, EPAM expects year-over-year
revenue growth to be 25% to 27%. Non-GAAP net income growth for 2014 is
expected to be in the range of 23% to 25% year-over-year, with an effective
tax rate of 20%. The full year weighted average share count is expected to be
just over 50 million diluted shares outstanding.
For the second quarter of 2014, EPAM expects revenues between $168 million and
$170 million, representing a growth rate of 26% to 27% over second quarter
2013 revenues. Second quarter 2014 non-GAAP diluted EPS is expected to be in
the range of $0.47 to $0.48 based on an estimated second quarter 2014
weighted average of 49.7 million diluted shares. GAAP diluted EPS is expected
to be in a range of $0.30 to $0.32.

Conference Call Information
EPAM will host a conference call to discuss results on Thursday, May 1, 2014
at 8:00 a.m. Eastern Time. The live conference call can be accessed by
dialing 1-877-407-0784 (international) or 1-201-689-8560 (domestic). A
telephonic replay will also be available approximately one hour after the
call and can be accessed by dialing 1-877-870-5176 (international) or
1-858-384-5517 (domestic). The passcode for the replay is 13580261. The
telephonic replay will be available until May 15, 2014. Interested investors
and other parties may also listen to a webcast of the conference call by
logging onto the Investor Relations section of the Company's website at
http://investors.epam.com.
About EPAM Systems
Established in 1993, EPAM Systems, Inc. (NYSE: EPAM), is recognized as a
leader in software product development by independent research agencies.
Headquartered in the United States, EPAM employs approximately 9,800
professionals and serves clients worldwide utilizing its award-winning
Central and Eastern European global delivery platform and its locations in 17
countries throughout North America, Europe, and Asia. EPAM was ranked by
Forbes as #6 among America's 25 Fastest-Growing Tech Companies and #2 among
the Fast-Growing Tech Stars.
For more information, please visit www.epam.com.

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 EPAM's business and uses the measures to establish budgets and
operational goals, communicated 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 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 acquisition-related 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 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 its
consolidated financial statements, which are prepared according to 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.

Contact:

EPAM Systems, Inc.
Anthony J. Conte, Chief Financial Officer
Phone: +1-267-759-9000 x64588
Fax: +1-267-759-8989
investor_relations@epam.com

EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(US Dollars in
thousands, except share and per share data)
----------------------------------------------------------------------------------------
| Three Months Ended |
| |
| March 31, |
| 2014 2013 |
|Revenues $ 160,384 $ 124,198 |
|Operating expenses: |
|Cost of revenues (exclusive of depreciation and amortization) 102,454 77,937 |
|Selling, general and administrative expenses 32,359 27,083 |
|Depreciation and amortization expense 3,689 3,617 |
|Other operating expenses, net 25 25 |
|Income from operations 21,857 15,536 |
|Interest and other income, net 976 630 |
|Foreign exchange loss (1,241 ) (499 ) |
|Income before provision for income taxes 21,592 15,667 |
|Provision for income taxes 4,228 2,987 |
|Net income $ 17,364 $ 12,680 |
| |
|Net income per share: |
|Basic $ 0.37 $ 0.28 |
|Diluted $ 0.35 $ 0.27 |
|Shares used in calculation of net income per share: |
|Basic 46,797 44,812 |
|Diluted 49,207 47,646 |
----------------------------------------------------------------------------------------

EPAM SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(US Dollars in thousands, except share and per share data)

-------------------------------------------------------------------------------------------------------------
| As of As of |
| |
| March 31, 2014 December 31, 2013 |
|Assets |
|Current assets |
|Cash and cash equivalents $ 174,066 $ 169,207 |
|Accounts receivable, net of allowance of $1,936 and $1,800 respectively 89,932 95,431 |
|Unbilled revenues 58,791 43,108 |
|Prepaid and other current assets 15,111 14,355 |
|Employee loans, net of allowance of $0 and $0, respectively, current 2,114 1,989 |
|Time deposits 6,884 1,188 |
|Restricted cash, current - 298 |
|Deferred tax assets, current 5,366 5,392 |
|Total current assets 352,264 330,968 |
|Property and equipment, net 53,072 53,315 |
|Restricted cash, long-term 216 225 |
|Emp...

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.