Sapient Reports Third Quarter Financial Results; Achieves 38% Sequential Increase in Net Income.CAMBRIDGE, Mass. -- Sapient sa·pi·ent adj. Having great wisdom and discernment. [Middle English, from Old French, from Latin sapi (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : SAPE SAPE Sapient Corp (stock symbol) SAPE Substance Abuse Prevention Education SAPE Survivable Adaptive Planning Experiment SAPE Sexual Assault Prevention and Education ), a leading business consulting and technology services firm, today announced financial results for its third quarter ended September 30, 2004. Consolidated service revenues for the third quarter of 2004 were $64.2 million, representing a slight decrease of 0.4% from service revenues of $64.5 million for the second quarter of 2004, and a 44% increase from the third quarter of 2003. Gross revenues for the third quarter were $67.4 million, which included $3.2 million of reimbursable re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. expenses. Net income for the third quarter of 2004 was $7.8 million, or $0.06 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compared to a net income of $5.7 million, or $0.04 per diluted share, for the second quarter of 2004, and a net income of $1.0 million, or $0.01 per diluted share, for the third quarter of 2003. Consolidated service revenues for the first three quarters of 2004 were $187.5 million, a 41% increase from the first three quarters of 2003. Net income for the first three quarters of 2004 was $14.8 million, or $0.12 per diluted share. This compared to a loss of $7.5 million, or $0.06 per diluted share for the first three quarters of 2003. "By continuing to focus on our clients' success, we made strong progress in several key areas of our business," said Sapient's Co-Chairman and Co-Chief Executive Officer Jerry A. Greenberg Jerry A. Greenberg is the Co-Founder and former Co-Chairman and Chief Executive Officer of Sapient (NASDAQ:SAPE), a business consulting and technology services firm headquartered at Cambridge, MA. He, along with J. Stuart Moore, founded Sapient in 1991. . "As compared to last quarter, we grew net income 38%, recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue 19%, and materially exceeded our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: target of 10%." Third Quarter Highlights --Sapient won assignments with new and existing clients, including Avis Europe, The Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , BT, Cingular, Cisco, Enbridge Gas Distribution, Essent, Harrah's Entertainment Harrah's Entertainment, Inc. (NYSE: HET) is a gaming corporation that owns and operates casinos, hotels, and six golf courses under several brands. The company, based in Las Vegas, Nevada, is the largest gaming company in the world, with yearly revenues around $7.11 billion. , Insurance Bureau of Canada, Janus Capital Group Janus Capital Group Inc. is a public company headquarted in Denver, CO, US. It was founded in 1969. It provides risk-managed investment strategies. As of June 30, 2007, Janus managed $190. , Nextel, RouteOne, Scotiabank, Sony Electronics Sony Electronics Inc., headquartered in San Diego, Calif., is the largest component of Sony Corporation of America, the U.S. holding company for Sony's U.S.-based electronics and entertainment businesses. , Star Alliance, T-Com, the UK Government, Union Gas, University of Chicago Hospitals The University of Chicago Hospitals form a major center for medical care and research in the Hyde Park neighborhood of Chicago, Illinois. They are affiliated with and run by the University of Chicago, and serve as teaching hospitals for students of the institution's Pritzker , Verizon, and Vodafone. --In response to growing demand for Web solutions from both new and existing clients, Sapient announced that Clement Mok Clement Mok is a designer, software publisher/developer, author, and design patent holder. He has founded several design-related businesses — Studio Archetype (acquired by Sapient), CMCD and NetObjects, Inc.. From 1998 until 2001, he was Chief Creative Officer of Sapient. is expanding his role at Sapient as Global Director of Design Planning. Mok, who has been an active member on Sapient's Innovation Council, was formerly Sapient's Chief Creative Officer. In this expanded role, he will provide leadership and direction to further shape and define the next generation of Sapient's Web solutions. --Recurring revenue from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. client engagements accounted for 25% of revenue in the third quarter, compared to 21% of revenue in the second quarter. --The Department of the Navy honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. Sapient and the Navy e-Business Operations Office with an e-Gov Award for the Joint Expeditionary Warfare Expeditionary warfare is used to describe the organistion of a nations military to fight abroad, especially when deployed to fight away from its established bases at home or abroad. Logistics System (JEWLS JEWLS Joint Expeditionary Warfare Logistics System (Navy, Marine Corps) ). JEWLS uses Web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. technology to enhance mission performance and enable total logistics and operational visibility in a joint command environment. Conference Call Sapient will host a discussion of the third quarter results in a conference call today at 4:30 p.m. (ET), which will be broadcast live on the Internet. For webcast registration information, please go to http://www.sapient.com/earnings.htm. It is advisable ad·vis·a·ble adj. Worthy of being recommended or suggested; prudent. ad·vis  a·bil to register at
least 15 minutes prior to the call to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary
audio software. A re-broadcast of the call will be available from
October 28 at 7:30 p.m. (ET) through November 6 at 11:59 p.m. (ET) by
dialing 877-660-6853 (within the U.S.) or 201-612-7415 (outside the
U.S.) and entering account number 1628 and conference ID 120134 when
prompted.About Sapient Sapient is a leading business consulting and technology services firm that plans, designs, implements, and manages information technology to improve business performance for Global 2000 clients. Sapient was founded in 1991 based on a single promise: to deliver the right business results, on time and on budget. Sapient's fixed-price/fixed-time model, combined with industry, design, technology, and process expertise, provides clients with the highest business value at the lowest total cost of ownership. Headquartered in Cambridge, Massachusetts This article is about the city of Cambridge in Massachusetts. For the English university town, see Cambridge, England. For other places, see Cambridge (disambiguation). Cambridge, Massachusetts is a city in the Greater Boston area of Massachusetts, United States. , Sapient has offices in Canada, Germany, India, the United Kingdom, and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . More information about Sapient can be found at www.sapient.com. Sapient is a registered service mark of Sapient Corporation.
Sapient Corporation
Consolidated Balance Sheets
September 30, December 31,
2004 2003
------------- -------------
(Unaudited)
(In thousands)
Assets
Current Assets:
Cash, restricted cash and marketable
investments $109,651 $143,727
Accounts receivable, net 40,091 30,078
Unbilled revenues on contracts 15,825 14,387
Prepaid expenses and other current assets 9,940 6,283
------------- -------------
Total current assets 175,507 194,475
------------- -------------
Restricted cash and marketable investments 57,009 17,512
Net fixed assets and other assets 12,879 13,755
Net intangible assets 772 1,158
------------- -------------
Non-current assets 70,660 32,425
------------- -------------
Total assets $246,167 $226,900
============= =============
Liabilities and stockholders' equity
Current Liabilities:
Accounts payable and accrued expenses $35,720 $27,237
Accrued restructuring costs, current
portion 11,770 18,237
Income taxes payable 3,564 1,976
Deferred revenues on contracts 3,662 3,867
------------- -------------
Total current liabilities 54,716 51,317
Accrued restructuring costs, net of
current portion 17,072 22,550
Other long term liabilities 1,141 621
------------- -------------
Total liabilities 72,929 74,488
Stockholders' equity 173,238 152,412
------------- -------------
Total liabilities and stockholders'
equity $246,167 $226,900
============= =============
Sapient Corporation
Consolidated Statements of Operations
Three months ended Nine months ended
September 30, September 30,
----------------- -------------------
2004 2003 2004 2003
----------------- -------------------
(Unaudited)
(In thousands, except per share amounts)
Revenues:
Service revenues $64,193 $44,661 $187,535 $132,946
Reimbursable expenses 3,178 2,265 8,911 6,966
----------------- -------------------
Total gross revenues 67,371 46,926 196,446 139,912
Operating expenses:
Project personnel costs 34,385 25,059 106,929 80,955
Reimbursable expenses 3,178 2,265 8,911 6,966
----------------- -------------------
Total project personnel
costs 37,563 27,324 115,840 87,921
Selling and marketing costs 3,167 4,328 11,659 14,303
General and administrative
costs 18,551 14,442 53,019 42,194
Restructuring and other
related charges 241 737 1,108 2,135
Stock-based compensation 224 332 646 1,021
Amortization of intangible
assets 128 319 386 1,644
----------------- -------------------
Total operating expenses 59,874 47,482 182,658 149,218
Income (loss) from operations 7,497 (556) 13,788 (9,306)
Other income 5 1,485 23 1,289
Interest income 721 385 1,757 1,491
----------------- -------------------
Income (loss) before income
taxes 8,223 1,314 15,568 (6,526)
Income tax provision 390 305 770 930
----------------- -------------------
Net income (loss) $7,833 $1,009 $14,798 $(7,456)
================= ===================
Basic and diluted net income
(loss) per share:
Basic net income (loss) per
share: $0.06 $0.01 $0.12 $(0.06)
Diluted net income (loss) per
share: $0.06 $0.01 $0.12 $(0.06)
Weighted average common shares 123,172 121,182 122,733 120,961
Dilutive common share
equivalents 5,290 3,868 4,985 -
----------------- -------------------
Weighted average common shares
and dilutive common share
equivalents 128,462 125,050 127,718 120,961
================= ===================
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