Syntel (Nasdaq:SYNT) is a leading global provider of integrated information technology and Knowledge Process Outsourcing (KPO) solutions spanning the entire lifecycle of business and information systems and processes. Syntel leverages dedicated Centers of Excellence, a flexible Global Delivery Model, and a strong track record of building collaborative client partnerships to create sustainable business advantage for Global 2000 organizations. Recently named one of the "50 Best Managed Global Outsourcing Vendors" by The Black Book of Outsourcing, Syntel is assessed at SEI CMMi Level 5, and is ISO 27001 and ISO 9001:2000 certified.

Business Highlights

• Q1 revenue of $116.0 million, up 20% from year-ago quarter and down one percent sequentially
• Q1 EPS of $0.60 per diluted share, down 8% from year-ago quarter and 30% sequentially
• Q1 cash & short term investments of $213.2 million
• Global Headcount of 13,682 as of March 31, 2010

First Quarter Financial Highlights

• Revenue increased by 20 percent to $116.0 million, compared to $96.4 million in the prior-year period
• Applications Outsourcing accounted for 75 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 16 percent, e-Business contributing six percent and TeamSourcing at three percent
• Gross margin was 42.4 percent in the first quarter, compared to 46.5 percent in the prior-year period and 50.2 percent in the fourth quarter of 2009
• Net income for the first quarter was $25.1 million or $0.60 per diluted share, compared to $27.3 million or $0.66 per diluted share in the prior-year period and net income of $35.8 million or $0.86 per diluted share in the fourth quarter of 2009

Operational Highlights

• Demand for offshore services continued to improve during the first quarter
• Revenue momentum in maintenance services was sustained during the quarter

Business Outlook

The Company is providing the following guidance in FY2010-11:

Based on current visibility levels and an exchange rate assumption of 44.5 rupees to the dollar, the Company expects 2010 revenue of $445 to $470 million, and EPS in the range of $2.20 to $2.50.