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Revenue from software services stood at US$352mn, up 9.2% sequentially and 31%,compared to the same quarter last year. The revenue was significantly higher thanthe guidance of US$337.0 Â US$338.6mn. The revenue guidance for the current year isrevised upwards and is expected to be in the range of US$1,434 Â US$1,440mn. Thecorresponding annual growth rate is expected to be 30.8% - 31.3%. The earlierforecast for annual revenue was US$1,373 Â US$1,395mn.
Net Income for the quarter at US$65.5mn, indicates a YoY growth of 26.9%.
Basic EPADS for the quarter at US$0.21 is higher than the guidance of US$0.18. EPADSguidance for the year is revised upwards to US$0.86.
Commenting on the results, B. Ramalinga Raju, founder & chairman  Satyam, said  Therevenue and earnings per share for Q2 have exceeded the forecasted range on the backof strong volume growth of 9.5%. Q2 witnessed accelerated growth in select verticalssuch as TIMES, Healthcare and Retail in addition to inline growth in stapleverticals. Increase in the contribution of consulting and enterprise businesssolutions to 40.4% of revenue is a result of our sustained investments and favorablereviews from industry analysts about the maturity of our services in this space.Â
 We are observing a healthy demand environment signifying greater adaptation of theglobal delivery model, and we believe, based on our interactions with key decisionmakers, that this positive trend will continue in the near term. We are also pleasedto note that a greater portion of discretionary spending is being directed towardsleveraging the global delivery model , Raju added further.
Srinivas Vadlamani, Chief Financial Officer  Satyam, said  Q2 continued to witnessthe benefits of operational efficiency which helped us to mitigate the impact ofsalary hikes on margins. In addition, subsidiaries, for the first time, contributedpositively to the margin. While this is along expected lines, it gives us greaterconfidence to manage margins for fiscal 2007.Â
Key Business Achievements
Satyam added 35 customers, including a leading airline, a Korean auto major and aEuropean confectionary giant. The number of Fortune 500 customers increased by one.
Satyam has been awarded a project for an end-to-end implementation of a CustomerCare & Billing Solution for one of the largest domestic telecom service providers inthe fixed line and mobile space, across multiple cities.
Satyam has won a large order to implement a comprehensive Core Banking System,hosting a Data Centre and Disaster Recovery Centre, Networking and FacilityManagement, for a large Indian commercial bank. This is one of the leading systemintegration engagements that the company will perform on such a large scale.
Satyam has been engaged by a global automotive giant for the transition and supportof PeopleSoft application at multiple facilities in the US, Canada and Mexico for aperiod of five years.
A global top 3 pharmaceutical company has selected Satyam to implement iDecisionsTM,the Satyam IP Business Intelligence (BI) framework. This implementation is expectedto deliver significant cost benefits as well as other benefits includingspeed-to-market, compliance and improved decision-making.
Satyam and Microsoft have launched two state-of-the-art Business Intelligence (BI)facilities in Singapore and Shanghai. The two sites will be centres of excellence,where researchers will use real-life scenarios and data to test, develop, andimplement innovative solutions for the Financial Services sector. These labs willalso enable Satyam and Microsoft to study customersÂ' requirements more quickly toensure faster and more cost-effective implementation of BI solutions.
Citisoft, a Satyam subsidiary, is working with the offshore operations centre of anAnglo-American asset manager, in helping them set up a Hedge Fund administrationenvironment.
C itisoft will be helping the investment management arm of a major Pan-European bankassurance company in defining its strategy for investing in and supporting OTCDerivatives.
Satyam added 4025 associates in the quarter, taking the total employee strength to31659. Total resources, including those of subsidiaries and joint ventures,increased to 34908.
Nipuna Highlights
Neptune, SatyamÂ's BPO subsidiary, recorded revenue of US$8.99mn. in Q2 2007.NeptuneÂ's revenue guidance for fiscal 2007 stands at US$36mn. Neptune added 441employees this quarter, taking its resource strength to 2446 associates.
During the second quarter, Neptune added two new customers, including one of theworldÂ's leading telecom carriers. The company is now handling 60 processes for 29customers in engineering, healthcare, insurance, artwork management, IT helpdesk,finance and accounts animation, customer support, KPO and data management areas. Anew delivery facility, setup in Hyderabad in this quarter, has increased the numberNeptuneÂ's onsite and offshore facilities to five  three in Hyderabad, one each inBangalore and Chennai.
Key Awards and Recognitions in this Quarter
Satyam wins Asian MAKE Award
Satyam has been recognised by the Asian Most Admired Knowledge Enterprise (MAKE) asa TOP Asian knowledge organization. The MAKE Study is an established benchmark torecognise organisations for their ability to leverage enterprise knowledge todeliver superior performance in the areas of innovation, operational effectivenessand excellence in products and services.
Satyam wins AmstedÂ's BEST Award
Satyam was ranked 15th among 78 organisations in the American Society for Training &DevelopmentÂ's (ASTD) 2006 BEST Awards program, which recognises organisationalcommitment to employee learning.
About Satyam Computer Services Limited
Satyam (NYSE: SAY), the leading global consulting and IT services company, offers arange of expertise aimed at helping customers re-engineer and re-invent theirbusinesses to compete successfully in an ever-changing market. Around 35,000*highly-skilled professionals in Satyam work Onsite, Offsite, Offshore and Nearshore,to provide customised IT solutions for companies in several industry sectors.
SatyamÂ's ideas and products have resulted in technology-intensive transformationsthat have met the most stringent of international quality standards. SatyamDevelopment Centers in India, the USA, the UK, the UAE, Canada, Hungary, Malaysia,Singapore, China, Japan and Australia serve 521* global companies, of which 157* areFortune Global 500 and Fortune US 500 corporations. SatyamÂ's presence spans 55countries, across six continents. For more information visit: www.satyam.com
*Figures as per quarter ended September 30, 2006
Customer nos. are including those of Neptune and Citisoft
