SAPE

[David Randolph]

June 6th, 2007:

Initial analysis for SAPE:

[BigSully1]

http://stockcharts.com/h-sc/ui?s=SAPE&p=D&b=5&g=0&id=p78127665356

[wrangler]

SAPE : breakout of 6 month resistance

[BigSully1]

Source: Sapient


Sapient Reports Fourth Quarter 2007 Results
Thursday February 28, 4:28 pm ET 
Q4 Service Revenues Up 36% Year-Over-Year
Q4 GAAP Operating Profit Increases $10M Year-Over-Year
Q4 Cash from Operations is $32M


CAMBRIDGE, Mass.--(BUSINESS WIRE)--Sapient (NASDAQ: SAPE - News) today reported the following financial results for the fourth quarter ended December 31, 2007:
Service revenues were $155.0 million, an increase of 36% from $113.6 million in the fourth quarter of 2006.
GAAP income from operations was $10.4 million, or 6.7% of service revenues, an increase of $9.9 million from GAAP income from operations of $0.5 million in the fourth quarter of 2006.
Non-GAAP income from operations (excluding stock-based compensation expense, restructuring and other related charges, amortization of purchased intangible assets, and expense relating to the stock-based compensation review and restatement) was $16.3 million, or 10.5% of service revenues. This compares to non-GAAP income from operations of $9.6 million or 8.4% of service revenues in the fourth quarter of 2006.
GAAP diluted income per share from continuing operations increased to $0.07 from a loss of $0.01 in the fourth quarter of 2006.
Non-GAAP diluted income per share from continuing operations was $0.12, compared to $0.06 in the fourth quarter of 2006.
"Our impressive revenue growth and continued strong operating performance improvements in the fourth quarter are a testament to our highly distinctive market position, as well as our focus on operational efficiencies," said Alan J. Herrick, Sapient's president and chief executive officer. "With strong demand for our services, we are well positioned for further expansion in our core markets and service sectors."

The Company generated cash from operations of $31.7 million in the fourth quarter of 2007, compared to $23.8 million in the fourth quarter of 2006. Sapient ended 2007 with cash, cash equivalents and marketable securities of $178.1 million and no debt. Days sales outstanding was 57 days for the fourth quarter of 2007, improved from 62 days in the third quarter of 2007 and 70 days in the fourth quarter of 2006. During the fourth quarter of 2007, Sapient repurchased 96,298 shares of its common stock for $0.6 million.

As of December 31, 2007, the Company held approximately $41.6 million of marketable securities invested in auction rate securities collateralized by student loans and municipal debt. None of the securities held by the Company were collateralized by residential, commercial mortgages or sub-prime loans. The auction rate securities held by the Company are private placement securities with long-term maturities for which the interest rates reset through an auction process every 7 to 35 days. The auctions have historically provided a liquid market for these securities. Certain of the Company's investments in auction rate securities began to experience failed auctions beginning on February 13, 2008. Since then, the continued uncertainty in the credit markets has caused additional auctions to fail and prevented the Company from liquidating certain of our holdings.

As of February 27, 2008, the Company held auction rate securities with principal of $28 million. The Company is currently in the process of obtaining current valuations on these securities, but believes that any impairment will be temporary in nature and will not result in a charge to earnings. Based on the Company's ability to access its cash and other short-term investments, the Company does not anticipate that the current lack of liquidity of these investments will materially affect its ability to operate the business in the ordinary course.

Outlook

Sapient management provided the following guidance:

For the first quarter ending March 31, 2008:


Service revenues are expected to be $155 million or higher.
Non-GAAP operating margin is expected to be 7.5% or higher
For the year ending December 31, 2008:


Service revenue growth in 2008 is expected to be in the 20% to 25% range
Non-GAAP operating margin is expected to be 10% or higher, with the fourth quarter in the range of 13% to 16%
Webcast and Conference Call

Sapient will host a discussion of its fourth quarter results at 5:00 p.m. (EST) today, which will be broadcast live on the Internet. The dial-in information for the conference call is:

U.S.:     (888) 679-8018

International:   (617) 213-4845

Passcode:   42130249



Please use the following link to pre-register for the conference call as well as to access the live webcast of this event:

http://phx.corporate-ir.net/phoenix.zhtml? p=irol-eventDetails&c=65979&eventID=1600695.

In addition, a re-broadcast of the conference call will be available from February 28th at 7:00 p.m. (EST) through March 10th at 11:59 p.m. (EST). The replay information is as follows:

U.S.:     (888) 286-8010

International:   (617) 801-6888

Passcode:   65093751



The archived webcast of this event may be accessed at:

http://phx.corporate-ir.net/phoenix.zhtml? p=irol-eventDetails&c=65979&eventID=1600695

This link will also be posted at http://www.sapient.com/about+us/Investors.htm.

Editor's Note: Due to the length of some of the URLs in this press release, it may be necessary to copy and paste them into your Internet browsers URL address field.

Adjusted (Non-GAAP) Financial Measures

Sapient provides non-GAAP financial measures to complement reported GAAP results. Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. The Company anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results which exclude stock-based compensation expense, restructuring and other related charges, amortization of purchased intangible assets and expense relating to the stock-based compensation review and restatement.

Safe Harbor Statement

This press release contains forward-looking statements that involve a number of risks and uncertainties, in particular the financial guidance for future periods. Actual results could differ materially from management's expectations. A number of factors could cause actual events to differ materially from those indicated. Such factors include, without limitation: the continued acceptance of the Company's services; the Company's ability to accurately set fees for and complete its current and future client projects on a timely basis, successfully manage risks associated with its international operations, manage its growth and projects effectively, and continue to attract and retain high-quality employees; as well as other risk factors set forth in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as filed with the SEC.

About Sapient

Sapient, a global services firm, operates two groups—Sapient Interactive and Sapient Consulting—that help clients compete, evolve and grow in an increasingly complex marketplace. Sapient Interactive provides brand and marketing strategy, award-winning creative work, web design and development and emerging media expertise. Sapient Consulting provides business and IT strategy, process and systems design, package implementation and custom development, as well as outsourcing services such as testing, maintenance and support.

Sapient's passion for client success—evidenced by its ability to foster collaboration, drive innovation and solve challenging problems—is the subject of case studies on leadership and organizational behavior used by MBA students at both Harvard and Yale. Leading clients, including BP, Essent Energie, Harrah's Entertainment, Hilton International, Janus, Sony Electronics and Verizon, rely on the company's unique approach to drive growth and market momentum. Headquartered in Cambridge, Massachusetts, Sapient operates across North America, Europe and India. For more information, please visit www.sapient.com.

Sapient is a registered service mark of Sapient Corporation.

Sapient Corporation 
Consolidated Unaudited Condensed Statements of Operations 
   
  Three Months Ended December 31,     Twelve Months Ended December 31, 
     2007        2006         2007        2006     
           
  (in thousands, except per share amounts) 
Revenues:         
Service revenues   $  154,959   $  113,561    $  546,438   $  405,582   
Reimbursable expenses      5,701      5,521         19,551      16,061     
Total gross revenues      160,660      119,082         565,989      421,643     
Operating expenses:         
Project personnel expenses    104,682    73,228     372,363    270,213   
Reimbursable expenses      5,701      5,521         19,551      16,061     
Total project personnel expenses and reimbursable expenses    110,383    78,749     391,914    286,274   
Selling and marketing expenses    8,700    6,933     33,113    24,025   
General and administrative expenses    30,449    31,471     120,617    109,022   
Restructuring and other related charges    236    577     32    1,912   
Amortization of purchased intangible assets      486      841         2,038      3,564     
Total operating expenses      150,254      118,571         547,714      424,797     
           
Income (loss) from operations    10,406    511     18,275    (3,154  ) 
           
Interest and other income, net      1,785      1,447         5,900      6,167     
Income from continuing operations before income         
taxes, discontinued operations and cumulative         
effect of accounting change    12,191    1,958     24,175    3,013   
Provision for income taxes      3,018      3,062         8,959      4,432     
Income (loss) from continuing operations before discontinued operations and cumulative effect of accounting change
  9,173    (1,104  )    15,216    (1,419  ) 
Loss from discontinued operations    -    -     -    (433  ) 
Gain on disposal of discontinued operations      -      -         -      4,834     
           
Income (loss) before cumulative effect of accounting change    9,173    (1,104  )    15,216    2,982   
Cumulative effect of accounting change      -      -         -      154     
           
Net income (loss)   $  9,173   $  (1,104  )   $  15,216   $  3,136     
           
Basic income (loss) per share from continuing operations   $  0.07   $  (0.01  )   $  0.12   $  (0.01  ) 
Diluted income (loss) per share from continuing operations  $  0.07   $  (0.01  )   $  0.12   $  (0.01  ) 
Basic net income (loss) per share   $  0.07   $  (0.01  )   $  0.12   $  0.03     
Diluted net income (loss) per share   $  0.07   $  (0.01  )   $  0.12   $  0.03     
           
Weighted average common shares    125,025    123,190     124,180    123,692   
Weighted average dilutive common share equivalents      3,658      -         3,711      -     
Weighted average common shares and dilutive common share         
equivalents      128,683      123,190         127,891      123,692     


Sapient Corporation 
Consolidated Unaudited Condensed Balance Sheets 
         
     
  December 31, 2007   December 31, 2006 
  (in thousands) 
ASSETS     
Current assets:     
Cash and cash equivalents   $  118,697   $  75,022 
Marketable securities, current portion    57,667    51,859 
Restricted cash, current portion    458    551 
Accounts receivable, less allowance for doubtful accounts    82,413    75,402 
Unbilled revenues    33,403    34,201 
Prepaid expenses and other current assets      22,720      20,565 
Total current assets    315,358    257,600 
       
Restricted cash, net of current portion    1,294    1,338 
Property and equipment, net    34,914    27,623 
Purchased intangible assets, net    5,512    7,550 
Goodwill    40,544    38,929 
Other assets      9,982      9,024 
       
Total assets   $  407,604   $  342,064 
       
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY   
Current liabilities:     
Accounts payable   $  7,264   $  9,818 
Accrued compensation    54,203    33,077 
Accrued restructuring costs, current portion    3,584    3,867 
Deferred revenues, current portion    13,701    14,871 
Other current liabilities      47,405      47,068 
Total current liabilities    126,157    108,701 
Accrued restructuring costs, net of current portion    7,689    11,741 
Deferred revenues, net of current portion    577    865 
Other long-term liabilities      12,332      5,780 
Total liabilities    146,755    127,087 
       
Redeemable common stock    290    480 
       
Stockholders' equity      260,559      214,497 
       
Total liabilities, redeemable common stock and stockholders' equity   $  407,604   $  342,064 


Sapient Corporation 
Consolidated Unaudited Statements of Cash Flows 
                           
      Three Months Ended December 31,  Twelve Months Ended December 31, 
         2007         2006         2007         2006     
               
      (in thousands) 
               
Cash flows from operating activities:         
Net income (loss)   $  9,173    $  (1,104  )   $  15,216    $  3,136   
Adjustments to reconcile net income to net cash provided by (used in) operating activities:         
  (Gain) loss recognized on disposition of fixed assets    (13  )    44     72     128   
  Unrealized (gain) loss on financial instruments    (11  )    -     (11  )    -   
  Depreciation and amortization expense    4,934     3,642     17,338     13,580   
  Deferred income taxes    (925  )    80     782     508   
  (Recovery of) provision for allowance for doubtful accounts, net    (1,244  )    225     (1,426  )    1,776   
  Stock-based compensation expense (non-cash portion)    4,693     3,983     17,996     12,410   
  Gain on disposal of discontinued operations    -     -     -     (4,834  ) 
  Cumulative effect of accounting change    -     -     -     (154  ) 
  Changes in operating assets and liabilities, net of acquisition and disposition:         
   Accounts receivable    2,609     10,735     (3,676  )    (6,993  ) 
   Unbilled revenues    3,858     (2,683  )    1,726     (16,075  ) 
   Prepaid expenses and other current assets    2,783     (2,860  )    (1,047  )    (7,362  ) 
   Other assets    (559  )    (14  )    (499  )    (3,172  ) 
   Accounts payable    2,168     (1,120  )    (3,342  )    122   
   Accrued compensation    9,540     4,134     18,180     5,896   
   Accrued restructuring costs    (1,105  )    (439  )    (4,572  )    (5,724  ) 
   Deferred revenues    (4,419  )    1,381     (1,922  )    2,680   
   Other accrued liabilities    (1,056  )    7,662     (1,738  )    21,379   
   Other long-term liabilities      1,238         136         5,124         899     
               
  Net cash provided by operating activities      31,664         23,802         58,201         18,200     
Cash flows from investing activities:         
Cash paid for acquisition, including transaction costs, net of cash received    -     -     (883  )    (27,655  ) 
Cash received for sale of discontinued operations, net, and payment to         
  minority stockholders    -     134     436     5,276   
Purchases of property and equipment and cost of internally developed software    (5,390  )    (5,273  )    (20,361  )    (14,333  ) 
Sales and maturities of marketable securities    24,895     37,100     103,637     151,511   
Purchases of marketable securities    (50,605  )    (34,294  )    (109,423  )    (116,451  ) 
Change in restricted cash      7         506         360         (223  ) 
               
  Net cash used in investing activities      (31,093  )      (1,827  )      (26,234  )      (1,875  ) 
Cash flows from financing activities:         
Principal payments under capital lease obligation    (21  )    (33  )    (106  )    (135  ) 
Proceeds from stock option and purchase plans    5,060     625     11,068     5,506   
Widfall tax benefit from exercise and release of stock-based awards    182     -     182     -   
Repurchases of common stock      (619  )      -         (4,395  )      (18,109  ) 
               
  Net cash provided by (used in) financing activities      4,602         592         6,749         (12,738  ) 
Effect of exchange rate changes on cash and cash equivalents      (270  )      1,501         4,959         1,487     
               
Increase in cash and cash equivalents    4,903     24,068     43,675     5,074   
Cash and cash equivalents, at beginning of period      113,794         50,954         75,022         69,948     
Cash and cash equivalents, at end of period   $  118,697      $  75,022      $  118,697      $  75,022     


Sapient Corporation 
Unaudited Reconciliation of Non-GAAP Financial Measures 
                           
      Three Months Ended December 31,  Twelve Months Ended December 31, 
         2007         2006         2007         2006     
               
      (in thousands, except per share amounts) 
               
Service revenues   $  154,959      $  113,561      $  546,438      $  405,582     
               
GAAP income (loss) from operations   $  10,406    $  511    $  18,275    $  (3,154  ) 
Stock-based compensation review and restatement expenses    420     3,663     7,483     8,058   
Stock-based compensation expense    4,726     3,983     18,554     12,410   
Restructuring and other related charges    236     577     32     1,912   
Amortization of purchased intangible assets      486         841         2,038         3,564     
Non-GAAP income from operations   $  16,274      $  9,575      $  46,382      $  22,790     
               
GAAP operating margin    6.7  %    0.4  %    3.3  %    (0.8  %) 
Effect of adjustments detailed above      3.8  %      8.0  %      5.2  %      6.4  % 
Non-GAAP operating margin      10.5  %      8.4  %      8.5  %      5.6  % 
                                       
               
GAAP income (loss) from continuing operations before discontinued operations and cumulative         
effect of accounting change   $  9,173    $  (1,104  )   $  15,216    $  (1,419  ) 
   Stock-based compensation review and restatement expenses    420     3,663     7,529     8,058   
   Stock-based compensation expense    4,726     3,983     18,554     12,410   
   Restructuring and other related charges    236     577     32     1,912   
   Amortization of purchased intangible assets      486         841         2,038         3,564     
Non-GAAP income from continuing operations before discontinued operations and cumulative         
effect of accounting change   $  15,041      $  7,960      $  43,369      $  24,525     
                                       
               
GAAP basic income (loss) per share from continuing operations   $  0.07    $  (0.01  )   $  0.12    $  (0.01  ) 
Effect of adjustments detailed above      0.05         0.07         0.23         0.21     
Non-GAAP basic income per share from continuing operations   $  0.12      $  0.06      $  0.35      $  0.20     
               
GAAP weighted average common shares      125,025         123,190         124,180         123,692     
Non-GAAP weighted average common shares      125,025         123,190         124,180         123,692     
               
               
GAAP diluted income (loss) per share from continuing operations   $  0.07    $  (0.01  )   $  0.12    $  (0.01  ) 
Effect of adjustments noted above and change in dilution noted below      0.05         0.07         0.22         0.21     
Non-GAAP diluted income per share from continuing operations   $  0.12      $  0.06      $  0.34      $  0.20     
               
GAAP weighted average common shares and dilutive common share equivalents      128,683         123,190         127,891         123,692     
Non-GAAP weighted average common shares and dilutive common share equivalents      128,683         123,190         127,891         123,692     
--------------------------------------------------------------

[BigSully1]

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Sapient Corp.
25 First Street
Cambridge, MA 02141
United States - Map
Phone: 617-621-0200
Fax: 617-621-1300
Web Site: http://www.sapient.com

DETAILS  
Index Membership: N/A
Sector: Technology
Industry: Business Software & Services
Full Time Employees: 4,952


BUSINESS SUMMARY  
Sapient Corporation provides business, marketing, and technology consulting services. The company offers its services in the areas of business and information technology (IT) strategy, business applications, business intelligence, marketing, and outsourcing. Its business and IT strategy services include business-process consulting, business applications and enterprise architecture planning, e-business and Web strategy, IT governance and advisory services, and program management office. Sapient's business application services comprise business applications, customer relationship solutions, custom and package applications, enterprise resource planning, supply chain solutions, and Web solutions. Its marketing services consist of experience marketing, media planning and buying, campaign creation and execution, brand strategy and development, merchandising, marketing technologies, research and analytics, and Web solutions. Sapient's business intelligence service offerings include SAP business intelligence solutions, data warehousing, business intelligence, and research and analytics. Its outsourcing services comprise application design and development, application management, legacy application transition, operations management, sourcing strategy, and quality assurance and testing. The company offers its services to technology, telecommunications, energy, financial services, automotive, healthcare and life sciences, education, consumer/retail products, and travel and hospitality industries, as well as to federal, state, and local government clients in the United States, and to provincial and other governmental entities in Canada and Europe. Sapient was founded in 1991 and is headquartered in Cambridge, Massachusetts.

[BigSully1]

Bought a bit in aftermarket
---------------------------------------



Sapient Reports Fourth Quarter 2007 Results
Thursday February 28, 4:28 pm ET 
Q4 Service Revenues Up 36% Year-Over-Year
Q4 GAAP Operating Profit Increases $10M Year-Over-Year
Q4 Cash from Operations is $32M


CAMBRIDGE, Mass.--(BUSINESS WIRE)--Sapient (NASDAQ: SAPE - News) today reported the following financial results for the fourth quarter ended December 31, 2007:
Service revenues were $155.0 million, an increase of 36% from $113.6 million in the fourth quarter of 2006.
GAAP income from operations was $10.4 million, or 6.7% of service revenues, an increase of $9.9 million from GAAP income from operations of $0.5 million in the fourth quarter of 2006.
Non-GAAP income from operations (excluding stock-based compensation expense, restructuring and other related charges, amortization of purchased intangible assets, and expense relating to the stock-based compensation review and restatement) was $16.3 million, or 10.5% of service revenues. This compares to non-GAAP income from operations of $9.6 million or 8.4% of service revenues in the fourth quarter of 2006.
GAAP diluted income per share from continuing operations increased to $0.07 from a loss of $0.01 in the fourth quarter of 2006.
Non-GAAP diluted income per share from continuing operations was $0.12, compared to $0.06 in the fourth quarter of 2006.
"Our impressive revenue growth and continued strong operating performance improvements in the fourth quarter are a testament to our highly distinctive market position, as well as our focus on operational efficiencies," said Alan J. Herrick, Sapient's president and chief executive officer. "With strong demand for our services, we are well positioned for further expansion in our core markets and service sectors."

The Company generated cash from operations of $31.7 million in the fourth quarter of 2007, compared to $23.8 million in the fourth quarter of 2006. Sapient ended 2007 with cash, cash equivalents and marketable securities of $178.1 million and no debt. Days sales outstanding was 57 days for the fourth quarter of 2007, improved from 62 days in the third quarter of 2007 and 70 days in the fourth quarter of 2006. During the fourth quarter of 2007, Sapient repurchased 96,298 shares of its common stock for $0.6 million.

As of December 31, 2007, the Company held approximately $41.6 million of marketable securities invested in auction rate securities collateralized by student loans and municipal debt. None of the securities held by the Company were collateralized by residential, commercial mortgages or sub-prime loans. The auction rate securities held by the Company are private placement securities with long-term maturities for which the interest rates reset through an auction process every 7 to 35 days. The auctions have historically provided a liquid market for these securities. Certain of the Company's investments in auction rate securities began to experience failed auctions beginning on February 13, 2008. Since then, the continued uncertainty in the credit markets has caused additional auctions to fail and prevented the Company from liquidating certain of our holdings.

As of February 27, 2008, the Company held auction rate securities with principal of $28 million. The Company is currently in the process of obtaining current valuations on these securities, but believes that any impairment will be temporary in nature and will not result in a charge to earnings. Based on the Company's ability to access its cash and other short-term investments, the Company does not anticipate that the current lack of liquidity of these investments will materially affect its ability to operate the business in the ordinary course.

Outlook

Sapient management provided the following guidance:

For the first quarter ending March 31, 2008:


Service revenues are expected to be $155 million or higher.
Non-GAAP operating margin is expected to be 7.5% or higher
For the year ending December 31, 2008:


Service revenue growth in 2008 is expected to be in the 20% to 25% range
Non-GAAP operating margin is expected to be 10% or higher, with the fourth quarter in the range of 13% to 16%
Webcast and Conference Call

Sapient will host a discussion of its fourth quarter results at 5:00 p.m. (EST) today, which will be broadcast live on the Internet. The dial-in information for the conference call is:

U.S.:     (888) 679-8018

International:   (617) 213-4845

Passcode:   42130249



Please use the following link to pre-register for the conference call as well as to access the live webcast of this event:

http://phx.corporate-ir.net/phoenix.zhtml? p=irol-eventDetails&c=65979&eventID=1600695.

In addition, a re-broadcast of the conference call will be available from February 28th at 7:00 p.m. (EST) through March 10th at 11:59 p.m. (EST). The replay information is as follows:

U.S.:     (888) 286-8010

International:   (617) 801-6888

Passcode:   65093751



The archived webcast of this event may be accessed at:

http://phx.corporate-ir.net/phoenix.zhtml? p=irol-eventDetails&c=65979&eventID=1600695

This link will also be posted at http://www.sapient.com/about+us/Investors.htm.

Editor's Note: Due to the length of some of the URLs in this press release, it may be necessary to copy and paste them into your Internet browsers URL address field.

Adjusted (Non-GAAP) Financial Measures

Sapient provides non-GAAP financial measures to complement reported GAAP results. Management believes these measures help illustrate underlying trends in the Company's business and uses the measures to establish budgets and operational goals, communicated internally and externally, for managing the Company's business and evaluating its performance. The Company anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results which exclude stock-based compensation expense, restructuring and other related charges, amortization of purchased intangible assets and expense relating to the stock-based compensation review and restatement.

Safe Harbor Statement

This press release contains forward-looking statements that involve a number of risks and uncertainties, in particular the financial guidance for future periods. Actual results could differ materially from management's expectations. A number of factors could cause actual events to differ materially from those indicated. Such factors include, without limitation: the continued acceptance of the Company's services; the Company's ability to accurately set fees for and complete its current and future client projects on a timely basis, successfully manage risks associated with its international operations, manage its growth and projects effectively, and continue to attract and retain high-quality employees; as well as other risk factors set forth in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as filed with the SEC.

About Sapient

Sapient, a global services firm, operates two groups—Sapient Interactive and Sapient Consulting—that help clients compete, evolve and grow in an increasingly complex marketplace. Sapient Interactive provides brand and marketing strategy, award-winning creative work, web design and development and emerging media expertise. Sapient Consulting provides business and IT strategy, process and systems design, package implementation and custom development, as well as outsourcing services such as testing, maintenance and support.

Sapient's passion for client success—evidenced by its ability to foster collaboration, drive innovation and solve challenging problems—is the subject of case studies on leadership and organizational behavior used by MBA students at both Harvard and Yale. Leading clients, including BP, Essent Energie, Harrah's Entertainment, Hilton International, Janus, Sony Electronics and Verizon, rely on the company's unique approach to drive growth and market momentum. Headquartered in Cambridge, Massachusetts, Sapient operates across North America, Europe and India. For more information, please visit www.sapient.com.

Sapient is a registered service mark of Sapient Corporation.

Sapient Corporation 
Consolidated Unaudited Condensed Statements of Operations 
   
  Three Months Ended December 31,     Twelve Months Ended December 31, 
     2007        2006         2007        2006     
           
  (in thousands, except per share amounts) 
Revenues:         
Service revenues   $  154,959   $  113,561    $  546,438   $  405,582   
Reimbursable expenses      5,701      5,521         19,551      16,061     
Total gross revenues      160,660      119,082         565,989      421,643     
Operating expenses:         
Project personnel expenses    104,682    73,228     372,363    270,213   
Reimbursable expenses      5,701      5,521         19,551      16,061     
Total project personnel expenses and reimbursable expenses    110,383    78,749     391,914    286,274   
Selling and marketing expenses    8,700    6,933     33,113    24,025   
General and administrative expenses    30,449    31,471     120,617    109,022   
Restructuring and other related charges    236    577     32    1,912   
Amortization of purchased intangible assets      486      841         2,038      3,564     
Total operating expenses      150,254      118,571         547,714      424,797     
           
Income (loss) from operations    10,406    511     18,275    (3,154  ) 
           
Interest and other income, net      1,785      1,447         5,900      6,167     
Income from continuing operations before income         
taxes, discontinued operations and cumulative         
effect of accounting change    12,191    1,958     24,175    3,013   
Provision for income taxes      3,018      3,062         8,959      4,432     
Income (loss) from continuing operations before discontinued operations and cumulative effect of accounting change
  9,173    (1,104  )    15,216    (1,419  ) 
Loss from discontinued operations    -    -     -    (433  ) 
Gain on disposal of discontinued operations      -      -         -      4,834     
           
Income (loss) before cumulative effect of accounting change    9,173    (1,104  )    15,216    2,982   
Cumulative effect of accounting change      -      -         -      154     
           
Net income (loss)   $  9,173   $  (1,104  )   $  15,216   $  3,136     
           
Basic income (loss) per share from continuing operations   $  0.07   $  (0.01  )   $  0.12   $  (0.01  ) 
Diluted income (loss) per share from continuing operations  $  0.07   $  (0.01  )   $  0.12   $  (0.01  ) 
Basic net income (loss) per share   $  0.07   $  (0.01  )   $  0.12   $  0.03     
Diluted net income (loss) per share   $  0.07   $  (0.01  )   $  0.12   $  0.03     
           
Weighted average common shares    125,025    123,190     124,180    123,692   
Weighted average dilutive common share equivalents      3,658      -         3,711      -     
Weighted average common shares and dilutive common share         
equivalents      128,683      123,190         127,891      123,692     


Sapient Corporation 
Consolidated Unaudited Condensed Balance Sheets 
         
     
  December 31, 2007   December 31, 2006 
  (in thousands) 
ASSETS     
Current assets:     
Cash and cash equivalents   $  118,697   $  75,022 
Marketable securities, current portion    57,667    51,859 
Restricted cash, current portion    458    551 
Accounts receivable, less allowance for doubtful accounts    82,413    75,402 
Unbilled revenues    33,403    34,201 
Prepaid expenses and other current assets      22,720      20,565 
Total current assets    315,358    257,600 
       
Restricted cash, net of current portion    1,294    1,338 
Property and equipment, net    34,914    27,623 
Purchased intangible assets, net    5,512    7,550 
Goodwill    40,544    38,929 
Other assets      9,982      9,024 
       
Total assets   $  407,604   $  342,064 
       
LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' EQUITY   
Current liabilities:     
Accounts payable   $  7,264   $  9,818 
Accrued compensation    54,203    33,077 
Accrued restructuring costs, current portion    3,584    3,867 
Deferred revenues, current portion    13,701    14,871 
Other current liabilities      47,405      47,068 
Total current liabilities    126,157    108,701 
Accrued restructuring costs, net of current portion    7,689    11,741 
Deferred revenues, net of current portion    577    865 
Other long-term liabilities      12,332      5,780 
Total liabilities    146,755    127,087 
       
Redeemable common stock    290    480 
       
Stockholders' equity      260,559      214,497 
       
Total liabilities, redeemable common stock and stockholders' equity   $  407,604   $  342,064 


Sapient Corporation 
Consolidated Unaudited Statements of Cash Flows 
                           
      Three Months Ended December 31,  Twelve Months Ended December 31, 
         2007         2006         2007         2006     
               
      (in thousands) 
               
Cash flows from operating activities:         
Net income (loss)   $  9,173    $  (1,104  )   $  15,216    $  3,136   
Adjustments to reconcile net income to net cash provided by (used in) operating activities:         
  (Gain) loss recognized on disposition of fixed assets    (13  )    44     72     128   
  Unrealized (gain) loss on financial instruments    (11  )    -     (11  )    -   
  Depreciation and amortization expense    4,934     3,642     17,338     13,580   
  Deferred income taxes    (925  )    80     782     508   
  (Recovery of) provision for allowance for doubtful accounts, net    (1,244  )    225     (1,426  )    1,776   
  Stock-based compensation expense (non-cash portion)    4,693     3,983     17,996     12,410   
  Gain on disposal of discontinued operations    -     -     -     (4,834  ) 
  Cumulative effect of accounting change    -     -     -     (154  ) 
  Changes in operating assets and liabilities, net of acquisition and disposition:         
   Accounts receivable    2,609     10,735     (3,676  )    (6,993  ) 
   Unbilled revenues    3,858     (2,683  )    1,726     (16,075  ) 
   Prepaid expenses and other current assets    2,783     (2,860  )    (1,047  )    (7,362  ) 
   Other assets    (559  )    (14  )    (499  )    (3,172  ) 
   Accounts payable    2,168     (1,120  )    (3,342  )    122   
   Accrued compensation    9,540     4,134     18,180     5,896   
   Accrued restructuring costs    (1,105  )    (439  )    (4,572  )    (5,724  ) 
   Deferred revenues    (4,419  )    1,381     (1,922  )    2,680   
   Other accrued liabilities    (1,056  )    7,662     (1,738  )    21,379   
   Other long-term liabilities      1,238         136         5,124         899     
               
  Net cash provided by operating activities      31,664         23,802         58,201         18,200     
Cash flows from investing activities:         
Cash paid for acquisition, including transaction costs, net of cash received    -     -     (883  )    (27,655  ) 
Cash received for sale of discontinued operations, net, and payment to         
  minority stockholders    -     134     436     5,276   
Purchases of property and equipment and cost of internally developed software    (5,390  )    (5,273  )    (20,361  )    (14,333  ) 
Sales and maturities of marketable securities    24,895     37,100     103,637     151,511   
Purchases of marketable securities    (50,605  )    (34,294  )    (109,423  )    (116,451  ) 
Change in restricted cash      7         506         360         (223  ) 
               
  Net cash used in investing activities      (31,093  )      (1,827  )      (26,234  )      (1,875  ) 
Cash flows from financing activities:         
Principal payments under capital lease obligation    (21  )    (33  )    (106  )    (135  ) 
Proceeds from stock option and purchase plans    5,060     625     11,068     5,506   
Widfall tax benefit from exercise and release of stock-based awards    182     -     182     -   
Repurchases of common stock      (619  )      -         (4,395  )      (18,109  ) 
               
  Net cash provided by (used in) financing activities      4,602         592         6,749         (12,738  ) 
Effect of exchange rate changes on cash and cash equivalents      (270  )      1,501         4,959         1,487     
               
Increase in cash and cash equivalents    4,903     24,068     43,675     5,074   
Cash and cash equivalents, at beginning of period      113,794         50,954         75,022         69,948     
Cash and cash equivalents, at end of period   $  118,697      $  75,022      $  118,697      $  75,022     


Sapient Corporation 
Unaudited Reconciliation of Non-GAAP Financial Measures 
                           
      Three Months Ended December 31,  Twelve Months Ended December 31, 
         2007         2006         2007         2006     
               
      (in thousands, except per share amounts) 
               
Service revenues   $  154,959      $  113,561      $  546,438      $  405,582     
               
GAAP income (loss) from operations   $  10,406    $  511    $  18,275    $  (3,154  ) 
Stock-based compensation review and restatement expenses    420     3,663     7,483     8,058   
Stock-based compensation expense    4,726     3,983     18,554     12,410   
Restructuring and other related charges    236     577     32     1,912   
Amortization of purchased intangible assets      486         841         2,038         3,564     
Non-GAAP income from operations   $  16,274      $  9,575      $  46,382      $  22,790     
               
GAAP operating margin    6.7  %    0.4  %    3.3  %    (0.8  %) 
Effect of adjustments detailed above      3.8  %      8.0  %      5.2  %      6.4  % 
Non-GAAP operating margin      10.5  %      8.4  %      8.5  %      5.6  % 
                                       
               
GAAP income (loss) from continuing operations before discontinued operations and cumulative         
effect of accounting change   $  9,173    $  (1,104  )   $  15,216    $  (1,419  ) 
   Stock-based compensation review and restatement expenses    420     3,663     7,529     8,058   
   Stock-based compensation expense    4,726     3,983     18,554     12,410   
   Restructuring and other related charges    236     577     32     1,912   
   Amortization of purchased intangible assets      486         841         2,038         3,564     
Non-GAAP income from continuing operations before discontinued operations and cumulative         
effect of accounting change   $  15,041      $  7,960      $  43,369      $  24,525     
                                       
               
GAAP basic income (loss) per share from continuing operations   $  0.07    $  (0.01  )   $  0.12    $  (0.01  ) 
Effect of adjustments detailed above      0.05         0.07         0.23         0.21     
Non-GAAP basic income per share from continuing operations   $  0.12      $  0.06      $  0.35      $  0.20     
               
GAAP weighted average common shares      125,025         123,190         124,180         123,692     
Non-GAAP weighted average common shares      125,025         123,190         124,180         123,692     
               
               
GAAP diluted income (loss) per share from continuing operations   $  0.07    $  (0.01  )   $  0.12    $  (0.01  ) 
Effect of adjustments noted above and change in dilution noted below      0.05         0.07         0.22         0.21     
Non-GAAP diluted income per share from continuing operations   $  0.12      $  0.06      $  0.34      $  0.20     
               
GAAP weighted average common shares and dilutive common share equivalents      128,683         123,190         127,891         123,692     
Non-GAAP weighted average common shares and dilutive common share equivalents      128,683         123,190         127,891         123,692     

-------------------------------------------------------

[BigSully1]

I'll hold it. The market is holding this one back today. It'll go up.

[BigSully1]

Going UP. I bought in aftermarket last night.

[BigSully1]

February 29, 2008, 10:39 am
SAPIENT SHARES JUMP ON STRONG Q4, BLOWOUT GUIDANCE
Posted by Eric Savitz
Sapient (SAPE) shares are sharply higher this morning on better-than-expected fourth quarter results and 2008 guidance that beat the Street.

For the quarter, the IT consulting and outsourcing firm reported service revenue of $155 million and non-GAAP EPS of 12 cents, beating the Street at $146.7 million and 5 cents.

For Q1, Sapient sees revenue of "$155 million or higher," above the Street view of $146.8 million, with non-GAAP operating margin of 7.5% or higher.

For the year, the company sees service revenue up 20%-25% from the $546.4 million reported in 2007; that implies $655.7 million to $683 million, which is above the Street at $649.4 million.

Sapient shares today are up 89 cents, or 14.3%, at $7.13.

[BigSully1]

--------------------------------------------------------------------------------
February 29, 2008, 10:39 am
SAPIENT SHARES JUMP ON STRONG Q4, BLOWOUT GUIDANCE
Posted by Eric Savitz
Sapient (SAPE) shares are sharply higher this morning on better-than-expected fourth quarter results and 2008 guidance that beat the Street.

For the quarter, the IT consulting and outsourcing firm reported service revenue of $155 million and non-GAAP EPS of 12 cents, beating the Street at $146.7 million and 5 cents.

For Q1, Sapient sees revenue of "$155 million or higher," above the Street view of $146.8 million, with non-GAAP operating margin of 7.5% or higher.

For the year, the company sees service revenue up 20%-25% from the $546.4 million reported in 2007; that implies $655.7 million to $683 million, which is above the Street at $649.4 million.

Sapient shares today are up 89 cents, or 14.3%, at $7.13.

[kslifka]

I like SAPE chart...but I don't like this market.  I may buy in the morning if the futures are up for a quick trade.

[setravis]

Looks like a nice candidate to short...

[setravis]

the 3 year chart...
The Double Bottom (reversal) run up