Sapient Corporation Announces Record Year-End|
1996 Net Income Increased 132 Percent over 1995 Net Income
CAMBRIDGE, Mass., Jan. 30 /PRNewswire/ -- Sapient Corp today announced record financial
results for its fourth quarter and year ended Dec. 31, 1996. For the year, revenues increased 103
percent to $44,580,000 from $21,930,000 for 1995. Net income for the year was $6,571,000,
representing a 132 percent increase over 1995. Earnings per share grew to $0.56 from $0.28 for
the prior year. Fourth quarter revenues increased 72 percent to $13,451,000 from $7,840,000 for
the same period in 1995. Net income for the quarter was $2,048,000, representing a 90 percent
increase over the fourth quarter of 1995. Earnings per share grew to $0.16 from $0.10 for the
same period in 1995.
"Sapient's strong growth has been due both to external market factors and to our unique ability to
respond to those factors," said Jerry A. Greenberg, Sapient's co-chairman and co-chief executive
officer. "Demand is exploding for technological solutions that allow our clients to adapt to the rapid
changes they are experiencing. This, along with an increasing comfort level with outsourcing
mission-critical applications, creates a tremendous opportunity for Sapient."
"We believe Sapient is uniquely positioned to respond to this opportunity," Mr. Greenberg
continued. "We spent 1996 continuing to deepen our expertise in key industries, refine our
proprietary Quality Design and Delivery (QUADD) process, and provide measurable value and
satisfaction to our clients. We did this while experiencing significant internal growth in the number
of employees and number of projects completed."
Sapient continued to gather momentum in 1996 by executing on its core strategies:
-- Penetration of Key Sectors: Reflecting a growing demand for its ability to deliver both expertise
and results, Sapient more than doubled its revenue over 1995 levels in the Financial Services
sector, more than tripled its revenue in the Manufacturing sector, and increased its revenue in the
Government sector seven-fold. The company also maintained a strong core of business in
Telecommunications with a 36 percent increase over 1995 levels, Retail with a 36 percent increase
over 1995 levels, and Energy Services with a 12 percent increase over 1995 levels. Of particular
note is that, in the Manufacturing sector, a significant portion of the revenue was from projects for
other high-tech companies.
-- Attraction and Retention of Highly Skilled Employees: Due to the commitment of the entire
company to support the hiring process, Sapient more than doubled its employee base to nearly
500 people to meet the growing demand for its services. While most of these additions were
client/server developers, lead developers and system architects, Sapient also added to its
management team several senior-level executives including Mark Lobene from Teknekron
Software (now TIBCO), Nikki Fisher from Sprint Corporation, and John Galante from Merrill
-- Geographic Expansion: During 1996, Sapient continued to expand its operations in both its
New York and San Francisco offices. It also established a base of customers in Atlanta and
Chicago, which led to the opening of offices in both locations in January 1997.
-- Delivery of Strategic Applications to Clients: Sapient continued to deliver applications that not
only use the best available technologies but also provide a strategic advantage to its clients.
Examples of such applications include:
-- In three months, Sapient built an electric power marketing system that allowed Sonat Power
Marketing Inc., a national electric power marketer owned by Sonat Inc., to take advantage of a
window of opportunity created by the opening of the wholesale electricity market to competition.
-- Sapient worked with Wells Fargo Bank to create Business Gateway, the banking industry's first
on-line, real-time small business banking system using Web servers and browsers.
-- Sapient and the State of Maine's Bureau of Medical Services developed and implemented an
integrated technology solution to reform the state's Medicaid administration program. The goal of
this initiative is to reduce program costs by $7 million over the next three years, while still
improving overall service to the state's Medicaid recipients.
-- For Public Service Electric and Gas of New Jersey (PSE&G), Sapient created an Automated
Work Management system which PSE&G field personnel use, along with a mobile data terminal,
to download job assignments and then upload job completion data from their field locations. The
results are increased responsiveness to customers as well as an optimization of resources through
better scheduling of people, equipment and materials.
In addition to the core strategic activities of 1996, Sapient raised $33.1 million in its initial public
offering in April and an additional $22.0 million through a follow-on offering in October.
About Sapient Corporation
Sapient Corporation, based in Cambridge, Mass., designs, develops and implements information
systems to help organizations rapidly achieve their business objectives. Founded in 1991, Sapient
has a proven track record of delivering information technology solutions to the world's leading
organizations on a fixed-price, fixed-timeframe basis.
Sapient delivers business-critical solutions for both enterprise-wide and departmental initiatives
using its proprietary QUADD (Quality Design and Delivery) process. QUADD is a
workshop-based, rapid development methodology which emphasizes active client participation to
help visualize, prioritize and create time-critical business and technology solutions. For more
information, please visit Sapient's World Wide Web site at sapient.com.
NOTE: Sapient and QUADD are registered trademarks of Sapient Corporatio