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Ness Technologies, Inc. (NSTC)

Ness Technologies, Inc. provides Information Technology (IT) business services and solutions to more than 500 clients in the commercial, industrial and government sectors. The company is known for its specialized expertise in software product engineering; system integration, application development and consulting; and software distribution. The company delivers its services and solutions through offices located in 18 different countries with a work force of approximately 8,000 experienced professionals.

Ness Technologies has formed strategic partnerships with many leading global software and infrastructure vendors to capitalize on a wide array of technologies and innovation. The company continuously evaluates and pursues other potential partners to deliver the most effective and advanced solutions to its clients. By achieving the highest level of certification with many of its partners, Ness Technologies has been able to leverage its early access to new product offerings to influence the development of new products and offerings.

Despite economic turbulence, the company’s balance sheet remains strong. As of last report, the company held $35.0 million in cash and cash equivalents, and $627.5 million in other assets. Total current and long-term liabilities were reported at $332.4 million. Stockholders’ equity totals approximately $330.2 million providing a book value per share of $8.69, which is significantly higher than the current market price.

For the second quarter of 2010, Ness Technologies reported revenues of $139.7 million, an increase of 10% from last year. The company said it continues to expect top line revenue growth and margin expansion throughout the rest of the year, with third quarter results in line with second quarter results, and fourth quarter results significantly better than third quarter results.

Currently, 2.16% of the shares outstanding are held by insiders and 68.50% are held by institutions. Two analysts believe the company is a “Strong Buy, two believe it’s a “Buy”, and one believes it’s a “Hold”. Next year analysts expect earnings per share of $0.57 compared to this year’s $0.43. Next year’s revenues are anticipated to total $604.4 million versus this year’s $565.5 million.

Key statistics (8/26/10):

Market cap: $161.5 Million
P/S Ratio: 0.32 versus industry average of 1.93
5-Year Avg. Sales Growth of 12.44% versus industry average of 14.81%
5-Year Avg. Gross Margin of 27.6% versus industry average of 26.8%

Debt/Equity Ratio: 0.24 versus industry average of 0.25
Current Ratio: 1.3 versus industry average of 2.7
Quick Ratio: 1.3 versus industry average of 2.7
Book Value/Share: $8.69 versus current market price of $4.25

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Monday, July 13th, 2009 Uncategorized