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WIKI ANALYSIS
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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
EPAM Systems (NYSE:EPAM) makes money by providing IT services. The company's clients include technology companies and independent software vendors who use EPAM's software engineering services. EPAM operates industry specific verticals which can provide more specified support and services to its customers. They operate delivery centers in Central and Eastern Europe where technical talent is relatively inexpensive.[1]
Business Overview
For the first nine months of September 2011, the full year revenues were $239M. This resulted in a net income of $32M. For the same period in 2010, EPAM reported revenues of $151M and a net income of $17M. [2]
New Updates
The company's initial public offering of stock on the NYSE occurred on February 7, 2012. The company offered 6M shares each for $12. This was well below the $16-$18initial price range. The deal raised a total of $72M. The lead mangers of the deal were Citi, UBS, and Barclays.[3]
Trends & Forces
Dependence on Relative Wages
EPAM's business model rests on its ability to benefit from the relatively low wages for talent in Central and Eastern Europe compared with those of its clients. This strategy requires that the talent is unable or unwilling to move to EPAM's clients' locations. It further needs the wages where its clients are located to remain relatively high while the labor force in competitor countries like India or China remain either not trained enough or too expensive. As a result, shifts in labor trends will have a significant impact on EPAM. [4]
- ↑ EPAM S-1/A 2012 PROSPECTUS SUMMARY "Summary" pg. 1-3
- ↑ EPAM S-1/A 2012 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL AND OTHER DATA" pg. 7
- ↑ Renaissance Capital - IPO Home "EPAM Systems prices downsized IPO at $12, below the range" 8 Feb 2012
- ↑ EPAM S-1/A 2012 PROSPECTUS SUMMARY "Risk Factors" pg. 10-13
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