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Information technology services industry

Sapient Corporation Reports Record Revenues and Net Income for Q1 1998

Strategic Insights

— 2 min read

Sapient Corporation, a leading provider of business and information technology solutions, announced financial results for its first quarter ended March 31, 1998, showing a 69 percent increase in revenues to $30,730,000, compared to $18,180,000 for the same period in 1997. Net income for the quarter was $4,262,000, a 58 percent increase over the first quarter of last year. Sapient also completed a two-for-one split of its common stock and registered a public offering of its common stock, which was completed on April 6.

Key Takeaways:

  • Revenues reached $30,730,000, a 69 percent increase from $18,180,000 in the first quarter of 1997.
  • Net income for the quarter was $4,262,000, a 58 percent increase over the first quarter of last year.
  • Diluted earnings per share grew to $0.16 from $0.10 for the same period in 1997.
  • Sapient completed a two-for-one split of its common stock and registered a public offering of its common stock.
  • The company made good progress on integrating its operations with EXOR Technologies, Inc., which it acquired in December 1997.
  • Demand for EXOR's services continued to be high, with turnover remaining at pre-acquisition levels.
  • Sapient believes it is well-positioned to take advantage of the growing market for IT services, estimated at over $350 billion, which is expected to nearly double to $622 billion over the next five years (Dataquest estimates).
  • The company's continued success in attracting highly qualified and motivated employees has been key to its growth, with record numbers of graduates recruited from top colleges in the last two quarters.
  • Sapient's hiring team has been supported by its creative and personalized approach to college recruiting, which was recently recognized by Computerworld magazine.

Statistics:

  • 69 percent increase in revenues from $18,180,000 in Q1 1997 to $30,730,000 in Q1 1998.
  • 58 percent increase in net income from $2,693,000 in Q1 1997 to $4,262,000 in Q1 1998.
  • $0.16 diluted earnings per share in Q1 1998, compared to $0.10 in Q1 1997.
  • 924 employees as of March 31, 1998, a net increase of over 100 employees from the end of Q4 1997.

Sources:

  • PR Newswire (April 16, 1998) - "Sapient Corporation Reports Record Revenues and Net Income for Q1 1998"
  • Dataquest estimates - "Global Market for IT Services Expected to Nearly Double to $622 Billion Over Next Five Years"
  • Computerworld magazine - "Sapient's Creative Approach to College Recruiting Sets Benchmark for Industry"

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