Exhibit 1
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Press Release of Quarterly Results of the Company.
For Immediate Release
Silverline Technologies Posts Revenues of $45.6 million (Rs. 214 crores) for
Fiscal First Quarter Ended June 30, 2001
SeraNova integration completed; streamlined organization; positioned for
growth
Mumbai, India and Piscataway, NJ (July 31, 2001): Silverline Technologies (BSE -
SLVR; NYSE - SLT), an international software development and integration
services firm, today announced financial results for the first fiscal quarter
ended June 30, 2001.
Note: Currency exchange rate used for conversion is Rs. 46.93 per $US 1.
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Highlights for the quarter ended June 30, 2001
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. Revenues grew by 38.6% to $45.6 million (Rs. 213.8 crores) compared to $32.9
million (Rs. 154.4 crores) in the first fiscal quarter ended June 30, 2000.
. EBITDA increased to $11.3 million (Rs. 52.8 crores) compared to $10.2 million
(Rs. 47.8 crores) for the quarter ended June 30, 2000.
. Net Income before restructuring and non-cash charges was $8.8 million (Rs.
41.3 crores) up from $7.8 million (Rs. 36.6 crores) for the quarter ended June
30, 2000. The restructuring charge of approximately $3.2 million (Rs. 15.2
crores) in the 2001 quarter is a non-recurring charge related to integration
of SeraNova, and Silverline's internal re-structuring. The non-cash goodwill
charge is related to acquisitions and will not be considered in earnings
computations from the quarter ending September 30, 2001 onwards as a result of
the rule changes in the US.
. Fully diluted cash EPS for the quarter ended June 30, 2001, was $0.10 (Rs.
4.78) compared to $0.10 (Rs. 4.78) in the corresponding period a year back;
Cash earnings per ADS (1 ADS = 2 equity shares) were $0.20 (Rs. 9.55),
compared to $0.20 (Rs. 9.55) for the quarter ended June 30, 2000.
. Silverline won 9 new enterprise clients and 7 significant extensions and
follow-on projects with Global 2000 companies.
. Silverline's ePayment division won a number of ePayment projects, including
those with a US-based credit card processor and a wireless ePayment operator.
In addition, the division was a founding member of the Solstice Alliance,
formed to build an Internet-capable multi-application ePayment system.
Operating Highlights
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Quarter ended
June'01 March'01/(1)/
Project Revenue Mix
. eBusiness 17% NA/(2)/
. eIntegration 18% NA/(2)/
. Package Implementation 5% NA/(2)/
. Mainframe 28% 20%
. Client/Server 28% 28%
. CRM 4% 4%
Revenue by Type of Services
. Projects 64% 63%
. Staffing 36% 37%
Revenue by Key Verticals
. Financial 49% 57%
. Banking 27% 30%
. Transaction Processing 19% 23%
. Insurance 3% 4%
. Telecom 11% 13%
. Manufacturing 7% 3%
. Others 33% 27%
Offshore Revenue 28% 28%
New Clients 9 15
Active Clients 166 168
Top 5 Client Revenue Exposure 20% 18%
Total Headcount 2,417 2,600
(1) The SeraNova acquisition was completed as of March 6, 2001. For pro-forma
comparison purposes, where possible, the metrics for the March 2001 quarter
have been adjusted to reflect SeraNova numbers for the entire quarter ended
March 31, 2001.
(2) Detailed project revenue mix breakdown is not available on a proforma basis.
Shankar Iyer, Co-CEO of Silverline said, "Despite the economic slowdown in the
US and the commensurate lengthening of the sales cycles, a shift to eIntegration
and strategic outsourcing opportunities, and our internal process of integrating
our acquisitions, we were able to report a healthy client win rate, expand our
existing relationships, and continue imparting strong business value to our
Global 2000 customer base. However, the above factors did restrain our earnings
growth during the quarter."
Ravi Singh, Co-CEO of Silverline said, "We feel upbeat about the future. We have
initiated and executed a number of initiatives to position our business for
higher growth. In the quarter ended June 30, 2001, we made substantial progress
in integrating the SeraNova acquisition, and in rationalizing our infrastructure
and capacity to harness the synergies from the acquisition. At the same time, we
are in the process of re-aligning our capabilities to more effectively address
the new business environment, including implementing a stricter bench management
discipline. These initiatives will be completed in the September 30, 2001
quarter, and while we will begin to see partial benefit in this quarter, the
full benefit will be reflected in the quarters thereafter. We now have the
organization, infrastructure and skills to offer our customers an end-to-end
suite of
IT services--from strategy to outsourced application management--that matches
favorably with competitors worldwide. We have streamlined our organization
structure to make it even more responsive to client needs, and to enhance
functional accountability organization wide. Within our business development
organization, we have created dedicated teams to focus on further driving
organic growth within existing customers, and to focus on large strategic
outsourcing opportunities. Concurrently, we have enhanced our focus on our core
offshore driven project business. Our strong customer relationships and our
high-quality professionals will continue to be the primary assets that will help
us successfully negotiate today's sluggish economy and form the foundation for
future growth."
Conference Call Details
Call for Indian Investors Call for US Investors
Date: Wednesday, August 1, 2001 Date: Wednesday, August 1, 2001
Time: 6:30pm, IST Time: 11:00 am, EDT
Access numbers:
Access numbers: +91.80.933.9333 or U.S. Toll-Free: 800.314.7867
+91.80.228.8180 or U.S. and International: +1.719.219.0214
+91-80-238-8910 Access code: 653397 or reference Silverline
First Quarter Conference Call
Access code: Silverline
Management's slide presentation can be viewed in real time on Silverline's
Web site at:
http://webcast.silverline.com/1QFY02/
Playback of US Call
Continuous playback of the U.S. investor call will be available for your
convenience. You may dial in 24 hours a day from 3:00pm EDT Wednesday, August 1
through Wednesday, August 8, 2001.
Playback number: United States Toll-Free: 888.203.1112
International: +1.719.457.0820
Playback access code: 653397
Playback of India Call
Playback of the India investor call will be available for your convenience. The
conference call will be replayed every two hours starting 10pm IST Wednesday
August 1, until Wednesday, August 8, 2001. You may dial in to the original call
access numbers (+91.80.933.9333 or +91.80.228.8180 or +91-80-238-8910) to hear
the replay.
Investor Contacts:
US - Peggy Coleman, Silverline Technologies: +1-732-584-5374
India - Shiv Muttoo, Citigate Dewe Rogerson: +91-22-284-2728
Media Contacts:
US - Richard Bevis, Silverline Technologies: +1-732-584-5828
India - Lawrence Alfonso, Silverline Technologies +91-40-324-0189
About Silverline
Silverline Technologies Limited (NYSE: SLT; BSE SLVR) is an international
software development and integration services firm, with over 2,600 software
professionals world-wide. Silverline provides a comprehensive set of eBusiness
consulting and IT services, including strategic consulting, creative design,
technology integration and implementation, as well as management and maintenance
of Internet and legacy applications.
Silverline focuses primarily on Global 2000 clients in key industry sectors,
such as automotive/discrete manufacturing, financial services,
healthcare/insurance, technology and telecommunications. The Company also has
extensive experience in technologies such as mobile and wireless applications,
ePayments and enterprise information portals, as well as in business processes
such as customer relationship management (CRM), eProcurement and online
marketplaces, channel management and employee enablement.
Silverline delivers its services through a global network of software
development centers. At the heart of the network are core offshore centers in
Chennai, Hyderabad and Mumbai, in India, and Cairo, Egypt. These centers support
regional development facilities located close to clients throughout North
America, Europe and Asia Pacific. With SEI CMM Level 4 and ISO 9001 certified
processes, Silverline uses this Global Delivery Model to provide superior
service, accelerated delivery and significant cost savings to clients around the
world. Visit Silverline on the World Wide Web at www.silverline.com.
###
NOTE: Silverline, the Silverline `S' logo and `The Power of Approach' are
registered trademarks and SeraNova, the SeraNova logo, `i-team and N/able are
service marks of Silverline Technologies Ltd. in the United States and other
countries. All other trademarks are the property of their owners.
Safe Harbor Statement
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.
SILVERLINE TECHNOLOGIES LTD.
STATEMENT OF OPERATIONS
(Unaudited and in US $)
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QUARTER ENDED QUARTER ENDED
JUNE 30, 2001 JUNE 30, 2000
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Revenues 45,565,301 32,883,749
Cost of Revenues 25,958,368 17,563,493
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Gross Profit 19,606,934 15,320,256
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Selling & Marketing Expenses 2,453,525 1,209,217
General and Administrative Expenses 5,896,090 3,903,009
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Total SG&A 8,349,615 5,112,226
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EBITDA $11,257,319 10,208.030
Deferred Stock Compensation Amortization 25,156 773,446
Depreciation 2,325,800 1,129,400
Amortization 3,468,004 451,931
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Total Operating Expenses 14,168,575 7,467,003
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Operating Income 5,438,359 7,853,253
Other Income (Expenses), Net (1,005,784) (393,905)
Restructuring/Non-recurring Charges 3,243,452 0
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Pre-tax Income 1,189,123 7,459,348
Provision for Income Taxes 485,047 1,100,424
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Net Income 704,076 6,358,924
Net Income before restructuring & non-cash items 8,792,630 7,773,643
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Cash EPS *
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Fully Diluted Cash EPS $ 0.10 $ 0.10
Fully Diluted Cash Earnings per ADS $ 0.20 $ 0.20
EPS
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Basic EPS 0.01 0.10
Fully Diluted EPS 0.01 0.08
Basic Earnings Per ADS 0.02 0.20
Fully Diluted Earnings Per ADS 0.02 0.17
Fully Diluted Shares Outstanding 86,393,932 75,191,782
(2 shares = 1 ADS)
* Cash earnings are computed as Net Income plus Amortization plus tax-effected
Depreciation plus non-recurring charges