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| - Second quarter revenues up 28% year-over-year and 7% sequentially |
Newtown, PA, Aug 9, 2013 - (ACN Newswire) - 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 the quarter ended June 30, 2013.
"Our differentiated business model and focus on emerging technology trends has given us a clear competitive advantage in the marketplace and helped us to produce another quarter of industry-leading revenue growth. We continue to see strong demand for our complex software engineering services across our vertical markets from both new and existing clients," commented Arkadiy Dobkin, CEO and President of EPAM Systems, Inc.
Second Quarter 2013 Highlights
-- Revenues increased to $133.2 million, up 28.3% year-over-year and 7.2% sequentially;
-- GAAP income from operations was $17.5 million, an increase of $0.7 million or 4.2% from $16.8 million in the second quarter of 2012;
-- Non-GAAP income from operations was $21.8 million, an increase of $2.7 million or 14.3% from $19.1 million in the second quarter of 2012;
-- Non-GAAP quarterly diluted EPS was $0.40, up 8.1% from $0.37 in the year-ago quarter;
-- Quarterly diluted earnings per share (EPS) on a GAAP basis was $0.29, flat compared to the year-ago quarter.
EPAM generated cash from operations of $8.0 million in the second quarter of 2013. At June 30, 2013, cash and cash equivalents were $107.5 million.
Reconciliations of non-GAAP financial measures to operating results and diluted EPS are included at the end of this release.
Corporate Highlights
-- Forbes named EPAM number 6 in the Forbes' list of America's 25 Fastest-Growing Tech Companies, which includes some of the most well-respected companies in technology such as LinkedIn, Facebook, Apple, Google, and Cognizant. This list was developed to identify firms that have proven and sustainable businesses with a pipeline of innovative ideas. In order to qualify for membership in the list, Forbes requires sales growth of at least 10% for each of the past three fiscal years and over the last 12 months, as well as estimated earnings growth above 10% over the next three to five years.
-- EPAM's Innovation Lab project created with its long-standing client, Wolters Kluwer, won the IT Outsourcing Project of the Year category at the 2013 European Outsourcing Association ("EOA") Awards and Best Practice Showcase. The winners were announced in Amsterdam, Netherlands, on April 25, during the annual EOA Awards ceremony that celebrates best pan-European IT practices.
-- EPAM was recognized with a Duke's Choice Award. At the event, Oracle recognized companies for their innovative projects and significant contribution to the Java community. The Award winners were announced on April 23 at JavaOne Russia 2013 in Moscow as part of the regional JavaOne conference series.
Full Year and Third Quarter 2013 Outlook
"We remain confident that the demand for our service offerings will be strong for the balance of the year. Our technical expertise combined with the investments that we have made to expand our scope of services, both organically and through acquisitions, have positioned us for continued future growth across the geographies and verticals that we serve." concluded Mr. Dobkin.
Based on current conditions, EPAM reiterates full year guidance of expected year-over-year revenue growth in the range of 23% to 25%. Non-GAAP net income growth for 2013 is expected to be in the range of 12% to 15% year-over-year, with an effective tax rate of approximately 20%.
For the third quarter of 2013, EPAM expects revenues between $135 million and $137 million, representing a growth rate of 23% to 25% over third quarter 2012 revenues. Third quarter 2013 non-GAAP diluted EPS is expected to be in the range of $0.41 to $0.42 based on an estimated third quarter 2013 weighted average of 48.7 million diluted shares.
Conference Call Information
EPAM will hold a conference call to discuss its second quarter 2013 results at 8:00 a.m. Eastern time, on Friday, August 9, 2013. A live webcast of the call may be accessed over the Internet from EPAM's Investor Relations website at http://investors.epam.com. Participants should follow the instructions provided on the website to download and install the necessary audio applications. The conference call is also available by dialing +1-800-237-9752 (international) or +1-617-847-8706 (domestic) and entering the passcode 90572291.
A replay of the live conference call will be available approximately one hour after the call. The replay will be available on EPAM's website or by dialing +1-888-286-8010 (international) or +1-617-801-6888 (domestic) and entering the replay passcode 37864189. The telephonic replay will be available until August 26, 2013.
About EPAM Systems
Established in 1993, EPAM Systems, Inc. (NYSE:EPAM) provides software engineering solutions through its leading Central and Eastern European service delivery platform. Headquartered in the United States, EPAM employs approximately 8,900 IT professionals and serves clients worldwide from its locations in the United States, Canada, UK, Switzerland, Germany, Sweden, Netherlands, Belarus, Hungary, Russia, Ukraine, Kazakhstan and Poland.
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.
Ilya Cantor, Chief Financial Officer
Phone: +1-267-759-9000 x64588
Fax: +1-267-759-8989
investor_relations@epam.com
Press release: http://bit.ly/15gKcI7
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: EPAM Systems, Inc. via Thomson Reuters ONE
Topic: Earnings
Source: EPAM Systems, Inc.
https://www.acnnewswire.com
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