Russian Epam Systems boosts H1 net profit 70%, plans IPO in New York
MOSCOW. Aug 29 (Interfax) - Russian software developer Epam Systems posted a net profit of $18 million in the first half of 2011, 70% more than in the same period last year.
The figures are contained in the company's accounts, which are published on the web site of the U.S. Securities and Exchange Commission.
Revenue rose 66% in the six months year-on-year to $153 million.
The company said it increased sales to existing clients in the financial sector for $34 million, up from $15.5 million a year earlier.
The company registered sales growth in all territories: to $48 million from $23 million in Europe (31.4% of total revenue), to $77 million from $50 million in North America (50.3%) and to $25.2 million from $17.3 million in Russia and the CIS (16.5%).
Consolidated assets reached $200.9 million as of June 30, up from $170.8 million at year-end.
Epam Systems has filed for a listing on the New York Stock Exchange. The company expects to raise up to $100 million in an IPO, which will be organized by Citi, UBS, Barclays Capital and Renaissance Securities.
The shares to be offered in the IPO will be supplied by eight Epam executives: President Arkady Dobkin, Executive Vice President Karl Robb, vice presidents Ilya Kantor and Ginger Mosier, Chief Technical Director Balazs Fejes, Directors Ross Goodhart and Drew Guff and Director and Corporate Secretary Donald Spencer.
In addition, the offering will include shares currently held by the funds Russia Partners, Rainmeadow Holding (VTB Capital) and Da Vinci, as well as shares held by Epam co-founder Leonid Lozner.
Epam conducted a private placement in 2008 and in May 2010 VTB Capital closed acquisition of a minority stake.
The share prospectus on the SEC's web site does not specify the size of the stakes held by the owners.
Epam Systems, founded in 1993, had $221.8 million in revenue in 2010 under US GAAP. Net profit was $28.3 million. The company posted a net profit of $72.8 million in the first quarter of 2011 on revenue of $72.8 million.
