TROY: The company's two main service offerings now account for 92.4 percent of total revenue, compared to 91.2 percent in the third quarter and 88.3 percent for the prior-year fourth quarter. This revenue mix reflects the company's continued de-emphasis of its TeamSourcing staffing business. Total revenue for the fourth quarter was $42.3 million, compared to $42.1 million in the third quarter and $43.3 million in the year-ago quarter. On a GAAP basis, net income for the fourth quarter increased to $12.9 million or $0.32 per diluted share from $2.2 million or $0.06 per diluted share in the prior-year period. The prior year's net income included a write- off of software development costs relating to the Company's incubator investments of $1.0 million and other investments of $3.1 million, both net of tax. On a GAAP basis, the operating margin reached 42.6 percent for the fourth quarter, as compared to 25.7 in the prior quarter and 14.6 percent in the year-ago quarter. During the 2002 fourth quarter, the Company reversed previous accruals of $1.3 million due to an internal policy change relating to unused employee vacation time, as was discussed during last quarter's conference call. Also, during the quarter, the Company concluded most of the matters of litigation related to the Metier transaction, an IT services company that Syntel acquired in 1999. Accordingly, $5.7 million of accrued Metier liabilities have been reversed into income during the quarter. As of December 31, 2002, $0.9 million remained in accrued Metier liabilities. The company's gross margin (47.5% on GAAP basis), excluding the one-time vacation accrual reversal recorded in the fourth quarter, continued to expand, reaching 44.7 percent in the fourth quarter of 2002, from 44.6 percent in the previous quarter and 38.3 percent in the fourth quarter of 2001. "Syntel's better-than-expected earnings reflect the leverage inherent in our business model -- the offshore outsourcing of strategic IT solutions for the Global 2000," said Bharat Desai, Syntel Chairman and CEO. "As we had long expected, recent project wins have begun to ramp up and long-term recurring relationships have continued to migrate overseas. We have continued to increase the value-added component of our global delivery solutions and remain focused on enhancing operating efficiencies, which, when combined with more work being performed from our lower cost centers in India, resulted in sustainable expansion of our gross margin both sequentially and year-over- year." Desai added, "The challenging economic environment has caused a growing number of corporate IT departments to seek out more cost effective and value- added technology service providers. Industry analysts are projecting that a growing number of prospective companies will soon pilot offshore outsourcing projects for the very first time. Therefore, while IT spending levels are not back to normal and decisions on a number of multi-year, multi-million dollar contracts continue to be extended, we are encouraged by this on-going trend. Syntel is well positioned to benefit from this movement as its on-site customer-centric focus, delivered seamlessly from our offshore service centers, is an especially attractive model to first time adopters, due to our domestic presence shouldering much of the responsibility and complexities involved in offshore delivery." Full year revenue for the company was $164.4 million, compared to $172.3 million in 2001. Applications Outsourcing and e-Business accounted for $148.8 million or 91 percent of the Company's overall revenue compared to 87 percent in the prior year. On GAAP basis, net income for 2002 increased to $34.3 million or $0.86 per diluted share from $20.4 million or $0.52 per diluted share in 2001. Net income for 2002, after excluding the one time effects of the Metier related liability reversal and vacation allowance reversal, increased to $30 million or $0.75 per diluted share from $25.3 million or $0.65 per diluted share in 2001, excluding $4.1 million, net of tax, related to an impairment of investments and write-off of software development costs and $0.8 million in operating losses related to the Company's incubator investments. During 2002, Syntel added 33 new corporate clients to its roster and launched 252 new engagements in the applications outsourcing and e-Business arenas. During the fourth quarter, more than 94 percent of the company's revenue came from customers who had been doing business with Syntel for more than one year. Syntel's financial position remains very strong. The company generated $16 million in cash during the quarter resulting in a cash position, including short-term investments, of $141 million on December 31, 2002. Additionally, the Company remains debt free with significant unused borrowing capacity.