Sapient Corp, the Cambridge, Massachusetts-based consulting and services firm, posted strong first-quarter results, with an 82.9% surge in revenues from the year-ago period. Net income for the quarter was down 1.6% at $4.3m, or $0.14 per share, including acquisition charges of $2.3m and deferred compensation costs of $1.7m.
Charges aside, net income rose to $7.0m, or $0.24 per share, beating the consensus of analysts surveyed by First Call by a penny. Revenue for the quarter was $57.8m, up from $31.6m in the year-ago quarter.
The company is seeing strong growth in the e-commerce/internet sector of its business, which now accounts for 50% to 55% of overall revenue. Another positive indicator for Sapient, says Credit Suisse First Boston, is that attrition rate among employees is running at less than 15% – well below the average in an industry where qualified staff are among a firm’s most important assets. Average project size for the company is now about $4m.
Based on the encouraging start to the year, CSFB has raised its revenue estimate for fiscal 1999 from $253m to $264m. It’s maintaining its EPS projection of $1.05 for the time being, however, pending the advent of more profitable projects.
