QUOTE AND NEWS
The Hindu Business Line  Jul 23  Comment 
What’s the point of disgorgement orders if you cannot distribute the proceeds to investors?
Forbes  Jul 21  Comment 
Last week, India’s market regulator SEBI ordered the founder of Satyam Computer, Ramalinga Raju, and four of its former executives to repay about $308 million in alleged gains from an accounting scandal at India’s top outsourcing firm. Adding...
The Hindu Business Line  Jul 20  Comment 
The SEBI order on Satyam Computers passed on for disgorgement of wrongful gains and insider trading has raised several issues.The market regulator has directed the erstwhile top mana...
The Hindu Business Line  Jul 18  Comment 
SEBI’s indictment answers questions about India’s largest corporate fraud. It also shows how laughably easy it was to carry out
The Economic Times  Jul 16  Comment 
SEBI also levied a monetary penalty of Rs 1,850 cr along with an interest at 12 % per annum, which to be calculated from January 7, 2009.
Wall Street Journal  Jul 15  Comment 
India's securities regulator ordered the founder and former executives of Satyam Computer Services Ltd. to disgorge more than $300 million in alleged gains from an accounting scandal that came to light in 2009.
The Hindu Business Line  Jul 15  Comment 
Orders them to restitute unlawful gains in 45 days with 12% interest
Reuters  Jul 15  Comment 
India's market regulator on Tuesday ordered five former executives of Satyam Computer Services to pay about 18.5 billion rupees ($307.72 million) because of alleged 'wrongful gains' in share transactions.
The Hindu Business Line  Jun 30  Comment 
Multiplex operator Inox Leisure is in talks with Satyam Cineplexes to buy the Gurgaon-based rival, a move which would expand its foothold further in the film exhibition market in the northern regi...
The Hindu Business Line  Jun 26  Comment 
The CBI special court has put off the date of announcement of verdict in Satyam Computer Services Ltd case to July 28. The special court had earlier said that the exact date of judgment i...





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Satyam Computer Services, Ltd. (SAY) is a worldwide consulting and information technology (IT) company, providing end-to-end IT solutions that help customers re-engineer and re-invent their businesses, improve efficiency of their IT infrastructure, and gain a competitive advantage. Through its global delivery model, the company leverages a combination of its offshore technology centers in India, its offsite-site overseas facilities in Australia, Canada, China, Hungary, Japan, Malaysia, Singapore, United Arab Emirates, United Kingdom, and the United States, its near-shore technology center in Canada, and onsite teams located at its client's offices, to deliver its services to its clients.

Satyam is a leading outsourcing firm. As reported in 2006 in the Hindu Business Line: IT services provider Satyam Computer Services Ltd, has been ranked as the world's leading engineering services outsourcing vendor by the Brown-Wilson Group (BWG). A BWG survey analysed 872 information technology and engineering outsourcing vendors in 63 countries and its results appeared in the company's "Black Book of Outsourcing," a highly respected publication. Satyam led in several categories, including vendor overall preference, flexible pricing and brand image.

Business

The company breaks down its services into four different categories

Software Development and Maintenance (43.9% of revenues in 2Q08) - The company designs, develops and implements customized IT solutions software for a variety of business processes and requirements ranging from single-platform, single site solutions, to multi-platform, multi-site systems. In addition, Satyam also provides maintenance services for large software systems, including modifications and enhancements, as well as production support for over 2,000 applications including JDE, Oracle and SAP.

Consulting and Enterprise Business Solutions (45.0%) - Leveraging its alliances with Oracle, SAP and Informatica, Satyam offers a portfolio of consulting and business solutions to its clients. The company provides solutions and services in the areas of enterprise resource planning (ERP), customer relationship management (CRM), supply chain management (SCM), data warehousing and business intelligence, knowledge management, document management, and enterprise application integration.

Extended Engineering Solutions (6.5%) - Satyam provides mechanical designing, embedded and electronic designing, product and process analysis, product life-cycle management services using computer-aided design, modeling and engineering tools for clients in industries such as automotive, aerospace, consumer electronics, industrial equipment, semiconductors, and telecommunications.

Infrastructure Management Services (4.6%) Satyam also provides infrastructure hosting and technology support for its clients in its own data center located in Ohio. These hosting and support services include administration, infrastructure management, migration, upgrades, configuration, backup, security management, and electrical and control systems engineering.

The company also offers Business Processing Outsourcing (BPO) services through its wholly-owned subsidiary, Satyam BPO Limited, which has recently been accredited as eSCM Level 5 Company, the world's first company to achieve this distinction. These services include product support, a technical help desk, back-office transaction processing and customer care centers in the areas of finance and accounting, human resources, claims administration and document management along with research, analytics, and animation services to its portfolio. Satyam's presence spans 57 countries and six continents around the globe, and the company has over 41,423 employees at the end of the second quarter of 2008, which includes over 29,222 associates in India. Geographically, the company derived 58.4% of revenues in 2Q08 from North America, 20.9% from Europe and the remaining 20.6% from the rest of the world.

On January 21, 2008, Satyam (SAY) reported 3rd quarter results for the quarter ended December 31, 2007. Revenue came in at $562.9 million, up 49.9% year-over-year and up 10.5% sequentially. Net income was $109.7 million, up 54.3% from the prior year and up 7.7% from the prior quarter. Basic earnings came in at $.33/share, up 50% from last year, and up 6.5% from the prior quarter. The company raised guidance for 2008, which guidance now between $2.119.2 and $2.122 billion, suggesting a growth rate between 45.0 and 45.2% over the 2007 results. Earnings were estimated for 2008 to come at $1.27/share suggesting a growth rate of 39.6% over the prior year.


Trends and Forces

Decline in Dollar leads to insourcing

It has been a commonplace event for many companies to outsource IT services to India and elsewhere to provide this service at a lower cost than available in America. However, one of the beneficial effects of the decline in the dollar value has been that it may once again be cost-effective to provide some of these services and manufacturing stateside instead of overseas. This insourcing, as it is called, is best exemplified by a story about IKEA, the European furniture manufacturer, which has announced plans to manufacture in the United States rather than in Poland.




References

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