UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 31, 2000
SILVERLINE TECHNOLOGIES LIMITED
(Exact name of registrant as specified in its charter)
Not Applicable
(Translation of registrant's name into English)
Republic of India
(Jurisdiction of incorporation or organization)
Unit 121, SDF IV
SEEPZ, Andheri (East)
Mumbai (Bombay) 400096
India
(91) 22-829-1950
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. Form 20F X Form 40 F _______
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ______ No X
If "Yes" is marked, indicate below the file number assigned to registrant in
connection with Rule 12g3-2(b). Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunder duly organized.
Date: February 23, 2001 SILVERLINE TECHNOLOGIES LIMITED
By: /s/ Shankar Iyer
--------------------------------
Name: Shankar Iyer
Title: CEO/President
[LOGO]
Silverline Technologies
For Immediate Release
Silverline Technologies' Revenues Increase by 50%
for Quarter Ended December 31, 2000
Net Income Represents a 30% Increase Over Same Quarter of 1999
Piscataway, NJ, USA and Mumbai, India - (January 31, 2001) - Silverline
Technologies Limited (NYSE:SLT), a leading global software solutions provider,
announced today financial results for the quarter ended December 31, 2000.
During the quarter, revenues increased to US$ 41.2 million, representing a 50
percent increase over revenues of US$ 27.5 million achieved during the same
quarter of 1999. Gross profits for the quarter reached US$ 18.3 million, up 62
percent over gross profits of US$ 11.3 million during the corresponding quarter
of 1999. The company generated net income of US$ 6.3 million or US$ 0.09
earnings per diluted share in the quarter ended December 31, 2000, representing
an increase of 30 percent compared with net income of US$ 4.8 million, or US$
0.07 earnings per diluted share for the same fiscal period one year ago.
Commenting on the quarterly results, Mr. Shankar Iyer, President & CEO,
Silverline Technologies said, "We are pleased with our sustained growth and
momentum, as well as our results for the quarter. Silverline continues to
demonstrate significant and consistent year over year and sequential revenue and
earnings growth. We have seen an overall improvement in our profit numbers even
amid questions surrounding the future of IT spending trends and budgets, along
with the prevailing conditions of general economic uncertainty. Additionally, we
have made aggressive, front-ended infrastructure investments during the quarter
that we expect to contribute to higher profitability in subsequent periods. Our
charter combines strong organic growth, supplemented by synergistic
acquisitions, ultimately leading to the optimal utilization of our world class
marketing and delivery infrastructure."
Highlights of the quarter include:
Note: All figures according to US GAAP (consolidated) for Silverline
Technologies Ltd. and its subsidiaries. Average conversion rate at US$ 1 = Rs.
46.68 for quarter ended December 31, 2000 and at US$ 1 = Rs. 43.20 for quarter
ended December 31, 1999. Percentage increases are calculated in US dollars.
Percentage increase figures for Indian rupees. (for Indian version of this
earnings release) may differ due to exchange rate fluctuations.
Corresponding quarter analysis - Oct - Dec 2000 v/s Oct - Dec 1999
- Revenues increase by 50% to US$ 41.2 million (Rs. 1,923 million) from US$
27.5 million (Rs. 1,190 million).
- Gross profits up 62 % to US$ 18.3 million (Rs. 855 million) from US$ 11.3
million (Rs. 488 million).
- Net income increases to US$ 6.3 million (Rs. 293 million) from US$ 4.8
million (Rs. 208 million), up by 30 %.
- Earnings per share at US$ 0.09 (basic and diluted) (Rs. 4.00 per share),
versus $US 0.08 (basic) and $US 0.07 (diluted).
Corresponding year ended analysis - Jan - Dec 2000 v/s Jan - Dec 1999
- Revenues up to US$ 141.6 million (Rs. 6,612 million) from US$ 87.6 million
(Rs. 3,783 million), an increase of 62%.
- Gross profits increase from US$ 38.1 million (Rs. 1,647 million) to US$
66.4 million (Rs. 3,099 million), up 74 %.
- Net income increases 93% to US$ 30.5 million (Rs. 1,424 million) from US$
15.8 million (Rs. 683 million).
Revenues and expenses analysis for October - December 2000
- Continued increase in offshore revenue contribution - at 36% during the
quarter (25% in the corresponding quarter previous year), the result of
offshore-centric focus of operations.
- Contribution from top 5 clients significantly lower at 31% (46% in October-
December 1999). The acquisition of Sky Capital International (SCI), one of
SLT's largest clients, has resulted in greater diversification of revenues.
- Operating expenses have increased by 172% to US$ 14.7 million (Rs. 687
million) compared to US$ 5.4 million (Rs.234 million). This has resulted
mainly from:
. higher SG&A expenses by SLT's overseas subsidiaries - front-ended investments
in marketing infrastructure that will drive future growth.
. amortization of goodwill paid for acquisitions of TIS Worldwide, CIT and SCI.
. increased depreciation charge largely contributed by additions to offshore
delivery infrastructure.
. higher operating and establishment expenses in new market segments.
- Excess income tax provision made in the preceding quarters in the current
year has been reversed in the December 2000 quarter.
About Silverline Technologies: Silverline Technologies is an international
software solutions provider with more than 12 years of industry experience and
over 1600 software professionals globally. Silverline provides IT solutions and
outsourcing services with specific focus in eBusiness, CRM, Legacy
Transformation, and Application Maintenance. While experienced in many business
disciplines, Silverline brings exceptional skills to the key areas of
telecommunications, banking, utilities, insurance, transportation, and retail.
With annual revenues of over $141.6 million for the year ended
December 31, 2000, Silverline provides solutions to Fortune 500 companies as
well as major corporations throughout the world. Silverline Technologies is ISO
9001 and SEI CMM Level 4 certified with facilities in the United States, India,
Canada, the UK, Germany, Hong Kong, Japan, and Egypt. Silverline uses its global
delivery model to provide superior service, accelerated delivery and significant
cost savings to its network of worldwide clients. More information can be found
at www.silverline.com
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NOTE: Silverline(R) and the Silverline logo are trademarks of Silverline
Technologies Ltd. All other trademarks are the property of their owners.
SeraNova, the SeraNova logo, 'The Power of Approach', 'i-team and N/able are
service marks of SeraNova in the United States and other countries.
Except for the historical information and discussions contained herein,
statements included in this release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from those
than may be projected by these forward-looking statements. These risks and
uncertainties include, but are not limited to competition, acquisitions,
attracting, recruiting and retaining highly skilled employees, technology, law
and regulatory policy and managing risks associated with customer projects as
well as other risks detailed in the reports filed by Silverline Technologies
Limited with the Securities and Exchange Commission. Silverline undertakes no
obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
For further information please contact:
United States India
- ------------- -----
Holly Weer (Investors) David Levine (Media) Shiv Muttoo
ThomsonFinancial/Carson Silverline Technologies Ltd. Citigate Dewe Rogerson
Tel: +1 212 510 9282 Tel: +1 732 457 0200 Ext. 211 Tel: +91 22 284 2728
Fax: +1 212 363 3971 Fax: +1 732 457 0496 Fax: +91 22 284 4561
E-mail: holly.weer@tfn.com E-mail: david@silverline.com E-mail: shiv@cdr-india.com
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SILVERLINE TECHNOLOGIES LIMITED AND SUBSIDIARIES
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Regd Office : 1405 Maker Chamber V, Nariman Point, Mumbai 400 021, India.
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Consolidated income statement (unaudited) as per U.S. GAAP for the 4th quarter
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ended December 31, 2000.
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in U.S. $
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Particulars Quarter ended Quarter ended Year ended Year ended (Audited)
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December 31, 2000 December 31, 1999 December 31, 2000 December 31, 1999
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Revenue 41,192,925 27,545,035 141,643,805 87,576,908
Cost of revenue 22,876,055 16,251,519 75,254,738 49,445,513
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Gross profit 18,316,870 11,293,516 66,389,067 38,131,395
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Operating Expenses 14,710,920 5,416,151 38,182,141 17,768,002
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Operating Income 3,605,950 5,877,365 28,206,926 20,363,393
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Other income/(expenses), net 1,405,236 (333,706) 4,610,071 (1,379,763)
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Income before income taxes 5,011,186 5,543,659 32,816,997 18,983,630
Provisions for income taxes (1,257,804) 737,571 2,303,897 2,808,449
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Income before extraordinary items 6,268,990 4,806,088 30,513,100 16,175,181
Extraordinary items (net of taxes) - - - 374,624
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Net Income 6,268,990 4,806,088 30,513,100 15,800,557
Basic EPS - U.S. $ 0.09 0.08 0.44 0.28
Diluted EPS- U.S. $ 0.09 0.07 0.44 0.25
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Notes :
1. The above results have been approved and taken on record by the Board of
Directors at their meeting held on January 31, 2001.
2. Other income includes the following:
(i) Exchange gain from operations of U.S. $ 400,694 for the quarter (exchange
gain during the corresponding quarter of the previous year of $ 185,955) due to
fluctuations in exchange rates.
(ii) $ 197,303 arising during the quarter ($ Nil during the correponding quarter
of the previous year) from exchange differences on translation of foreign
currency current assets maintained abroad resulting from the ADS issue.
Excluding these gains, the net income after tax is $ 6,071,687 during the
quarter ended December 31, 2000.
3. Pursuant to the decision taken at a meeting of the Board of Directors on
October 3, 2000, the company, during the current quarter, completed the
acquisition of the entire shareholding of Sky Capital International Ltd.,
(consisting of 20 million ordinary shares of of Hong Kong $ 1 each), a Hong Kong
based I.T. consultancy company for a consideration of U.S. $ 22 million.
4. At the meeting held on October 26, 2000, the Board of Directors of the
company approved the acquisition of a U.S. based NASDAQ listed company,
SeraNova, Inc.,a global provider of internet and e-commerce solutions.The
acquisition is proposed through an ADR swap including combination of issue of
ADRs and unsecured convertible debentures . In this regard, an extraordinary
general meeting of the company has been requisitioned on February 20, 2001. The
acquisition is further subject to the approval of SeraNova, Reserve Bank of
India and other statutory & regulatory authorities.
5. Basic & Diluted Earnings per share (EPS) have been calculated on income after
taxes but before extraordinary items.
On behalf of the Board of Directors
For Silverline Technologies Ltd.
Place : Mumbai
Date : January 31, 2001.
Ravi Subramanian
Chairman
SILVERLINE TECHNOLOGIES LTD
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Regd Office : 1405 Maker Chamber V, Nariman Point, Mumbai 400 021
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Unaudited financial results (provisional) for the quarter ended December 31,
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2000
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(Rs in Lacs)
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Quarter ended Nine months ended Year ended
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31-03-2000
31.12.2000 31.12.1999 31.12.2000 31.12.1999 (Audited)
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1 Net sales 7,491.50 5,115.83 21,167.06 13,832.55 19,528.23
2 Other income 800.34 141.90 3,059.71 343.17 418.72
3 Total income 8,291.84 5,257.73 24,226.77 14,175.72 19,946.95
4 Staff cost 802.41 477.76 2,113.11 1,412.16 2,023.94
5 Software development expenses (overseas) 3,097.37 2,324.45 8,555.96 5,735.02 8,022.33
6 Other expenditure 604.56 450.84 1,821.63 1,231.25 1,898.64
7 Total expenditure 4,504.34 3,253.05 12,490.70 8,378.43 11,944.91
8 Operating profits (PBDIT) 3,787.50 2,004.68 11,736.07 5,797.29 8,002.04
9 Finance charges 23.99 31.77 85.10 149.19 148.22
10 Depreciation 260.61 148.01 744.17 583.16 798.79
11 Profit before tax 3,502.90 1,824.90 10,906.80 5,064.94 7,055.03
12 Provision for taxation - - 65.00 1.00
13 Profit after tax before extraordinary items 3,502.90 1,824.90 10,841.80 5,064.94 7,054.03
14 Extraordinary items - 45.59 - (38.41) (38.41)
15 Net profit after tax and extraordinary items 3,502.90 1,870.49 10,841.80 5,026.53 7,015.62
16 Paid-up equity share capital 7,320.00 6,450.00 7,320.00 6,450.00 6,450.00
17 Reserves excluding revaluation reserves 39,012.59
18 Earnings per share (EPS) in Rs .- Basic 5.07 3.48 15.68 9.66 11.96
- Diluted 4.79 2.90 14.81 7.79 10.88
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Notes:
1. The above results have been approved and taken on record by the Board
of Directors at their meeting held on January 31, 2001.
2. Other income includes the following:
(i) Exchange gain from operations of Rs. 187.04 lacs for the quarter
(exchange gain during the corresponding quarter of the previous year of
Rs. 80.33 lacs) due to fluctuations in exchange rates.
(ii) Rs. 92.10 lacs arising during the quarter (Rs. Nil during the
corresponding quarter of the previous year) from exchange differences on
translation of foreign currency current assets maintained abroad resulting
from the ADS issue. Excluding these gains, the net profit after tax is Rs.
3410.80 lacs during the quarter ended December 31, 2000.
3. Pursuant to the decision taken at a meeting of the Board of Directors
on October 3, 2000, the company, during the current quarter, completed the
acquisition of the entire shareholding of Sky Capital International Ltd.,
(consisting of 20 million ordinary shares of Hong Kong $1 each), a
Hong Kong based I.T. consultancy company for a consideration of U.S. $22
million (equivalent of Rs. 10,143.87 lacs)
4. At the meeting held on October 26, 2000, the Board of Directors of the
company approved the acquisition of a U.S. based NASDAQ listed company,
SeraNova, Inc.,a global provider of internet and e-commerce solutions.The
acquisition is proposed through an ADR swap including combination of issue
of ADRs and unsecured convertible debentures . In this regard, an
extraordinary general meeting of the company has been requisitioned on
February 20, 2001. The acquisition is further subject to the approval of
SeraNova, Reserve Bank of India and other statutory & regulatory
authorities.
5. Basic & Diluted Earnings per share (EPS) have been calculated on
income after taxes but before extraordinary items.
On behalf of the Board of Directors
For Silverline Technologies Ltd.
Place: Mumbai
Ravi Subramanian
Date: January 31, 2001. Chairman