Syntel's revenue for the fourth quarter increased nine percent to $187.8 million, compared to $172.4 million in the prior-year period, and increased one percent sequentially from $186.4 million in the third quarter of 2012. During the fourth quarter, Applications Outsourcing accounted for 76 percent of total revenue, with Knowledge Process Outsourcing (KPO) at 15 percent, e-Business contributing seven percent and Team Sourcing at two percent.
The Company's gross margin was 45.2 percent in the fourth quarter, compared to 42.1 percent in the prior-year period and 45.5 percent in the third quarter of 2012. Selling, General and Administrative (SG&A) expenses were 15 percent of revenue in the fourth quarter, compared to 11.4 percent in the prior-year period and 15.6 percent in the previous quarter.
The fourth quarter income from operations was 30.2 percent of revenue as compared to 30.7 percent in the prior-year period and 29.9 percent in the third quarter. The sequential rise in operating margin primarily reflects the impact of currency-related balance sheet translations and, to a lesser extent, lower marketing costs.
Net income for the fourth quarter was $49.9 million or $1.19 per diluted share, compared to $44 million or $1.05 per diluted share in the prior-year period and net income of $51.5 million or $1.23 per diluted share in the third quarter of 2012.
