HCL Technologies (HCLTECH) Q4 00/01 earnings summary

Executive summary

• FY2001 revenue was $298.385m, net revenue after stock-based sales incentives was $296.652m, and net income rose to $101.947m from $52.110m.

• Operating income increased to $83.156m from $42.078m; diluted EPS was $0.34 versus $0.19.

• Operating cash flow was $77.616m; cash and cash equivalents ended FY2001 at $91.007m, up from $39.392m.

Financial highlights

• Revenue: $298.385m in FY2001, versus $206.833m in FY2000; net revenue was $296.652m after $1.733m of stock-based sales incentives.

• Operating income: $83.156m, versus $42.078m; income before taxes: $100.574m, versus $51.896m.

• Net income: $101.947m, versus $52.110m; diluted EPS: $0.34, versus $0.19.

• Other income, net, was $17.418m, including $11.282m of interest income and $7.130m net profit on investment securities sales, partly offset by $2.041m of finance costs.

• Total assets rose to $442.521m from $320.017m; stockholders’ equity increased to $389.313m from $281.741m.

Outlook and guidance

• SFAS 141 was to be adopted immediately and SFAS 142 from July 1, 2001; the impact, including any transitional impairment loss, was not practicable to estimate.

• The transition review would assess goodwill and intangible assets for impairment; $7.195m of unamortized goodwill and identifiable intangibles was expected to be subject to the transition provisions.