HCL Technologies Announces Second Quarter Fiscal 2000Results; Fiscal Second Quarter Net Income...

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 7, 2000

HCL Technologies Limited (Bombay Exchange: HCL Technologies), a leading global information technology company, announced financial results for the second quarter of its fiscal 2000 year.

For the second quarter ended December 31, 1999, revenues increased 20% to a record $47.1 million, exclusive of the equity pick up from the joint venture with Perot Systems. This compares to revenues of $39.2 million for the prior year's second quarter ended December 31, 1998. Net income for the quarter increased 152% to $10.3 million. This compares to net income of $4.1 million for the second quarter of last year.

For the six months ended December 31, 1999, revenues increased 19% to $91.3 million, compared to revenues of $76.7 million for the same period last year. Net income for the six months ended December 31, 1999 increased 139% to $18.6 million, compared to net income of $7.8 million reported for the six months ended December 31, 1998.

Shiv Nadar, Chairman, President and Chief Executive Officer of HCL, commented: &uot;A significant improvement in gross profit margin, which increased to 47.7% of revenue for the quarter versus 38.2% for the same period last year, reflects increased business with most of our major partners and higher billing rates. In addition, our strong business pipeline with both existing and new customers reflects a broader geographic diversity, in line with our strategy to expand our international revenue base.&uot;

He continued: &uot;We are pleased with the increased demand for our internet and e-commerce offerings. These now account for 38% of our revenue and we believe this strong demand will continue to have a favorable impact over the next several quarters. In addition, increased revenues and special cost efficiency initiatives in HCL America produced enhanced gross margin levels in the region.&uot;

HCL Technologies (HCL) provides a range of value-added information technology services including technology development, application engineering, and other professional services. HCL operates one of the largest software development infrastructures in India, consisting of nine individual software development centers. The company has entered into a joint venture with Perot Systems Corporation and strategic alliances with companies such as Logica, NTT Data, and Roccade. In addition, HCL has established dedicated offshore development centers with clients such as Cisco, Consilium, Infinium and Roccade. As of December 31, 1999 HCL and its joint venture employed over 2,900 software professionals in 31 offices located in 15 countries. HCL's global reach, ability to deploy IT professionals worldwide, and its unique combination of system and application software expertise enable it to offer value-added internet, e-commerce and enterprise-wide solutions to major clients worldwide. For more information on HCL Technologies, including its second quarter fiscal 2000 earnings financial tables, please visit the Company's website at www.hcltechnologies.com.