<PAGE>
Exhibit 3
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Release of Quarterly Results of the Company
<PAGE>
For Immediate Release [SILVERLINE TECHNOLOGIES LOGO]
Silverline Technologies Announces Quarterly Results
HY1 FY 2000 net income up 123%, HY 1 FY 2000 revenues up 61%
Piscataway, NJ, USA and Mumbai, India - (October 31, 2000) -- Silverline
Technologies Limited (NYSE:SLT), today announced results for the period ended,
September 30, 2000.
Highlights include:
Half year analysis - April - Sept 1999 v/s April-Sept 2000
- Revenues up from Rs.198.1 crore (US $43.03 million) to Rs.317.6 crore (US
$69 million), an increase of 61%.
- Gross profits increase from Rs. 87 crore (US $18.89 million) to Rs 151.5
crore (US $32.91 million), up 74.2%
- Operating income higher at Rs.79.3 crore (US $17.23 million) up by 69%.
- Net profits increase 123.4 % to Rs.84.6 crore (US $18.39 million) from
Rs.37.9 crore (US $8.23 million).
Corresponding quarter analysis - July-Sept 1999 v/s July-Sept 2000
- Revenues rise from Rs.113.7 crore (US $24.71 million) to Rs.168.3 crore
(US $36.57 million), an increase of 48%.
- Gross profits increase from Rs.49.7 crore (US $10.8 million) to Rs 81.7
crore (US $17.76 million), up 64.4%
- Operating income higher at Rs.43.4 crore (US $9.43 million) up by 54%.
- Net profits substantially up by 145% to Rs.55.5 crore (US $12.06 million)
from Rs.22.6 crore (US $4.92 million).
Analysis of revenues for Q2 FY 2001
- Increased offshore revenue contribution during the quarter at 35% (32% in
the previous quarter).
- Overall higher revenue contribution from e - business.
- e-business contribution to total revenues 43% in July-Sept 2000 up from
33% in April-June 2000.
Acquisition-led growth strategy
- Signed a Definitive Agreement to acquire SeraNova for US $99 million all
stock deal. Strong synergies between SeraNova's e-business capabilities
and Silverline's off shore delivery capabilities. 14% dilution of
Silverline's share capital. Transaction EPS accretive on merger.
<PAGE>
- Fully acquired SKY Capital International (Revenues US $24.3 million)
in US $22 million all cash transaction. Substantially enhanced
presence in Asia-Pacific region; accretive to Silverline's revenues in
FY 2001.
- 6% stake acquired in TIS Worldwide for US $12.5 million all cash.
Expected revenues at US $25 million over three years through
e-business solutions.
* Note: Quarter - July - Sept 2000
All figures according to US GAAP (consolidated) for Silverline
Technologies Ltd. and its subsidiaries.
Average conversion rate at US $1 = Rs. 46.03 as on 29, September 2000.
Commenting on their July-September 2000 results, Mr. Shankar Iyer, President &
CEO, Silverline Technologies said, "Following the successful completion of our
ADS issue, Silverline Technologies has embarked on an aggressive growth path
combining organic and acquisition-led expansion. This quarter has seen a
significant increase in revenues and earnings and we intend to continue to
achieve a high rate of growth by leveraging on our acquisitions."
About Silverline Technologies: Silverline Technologies is an international
software solutions provider with more than 12 years of industry experience and
over 1,600 software professionals globally. Silverline provides IT solutions and
outsourcing services with specific focus in eBusiness, CRM, Legacy
Transformation, and Application Maintenance. While experienced in many business
disciplines, Silverline brings exceptional skills to the key areas of
telecommunications, banking, utilities, insurance, transportation, and retail.
With annual revenues of over $116 million for trailing twelve months ended June
2000, Silverline provides solutions to Fortune 500 companies as well as major
corporations throughout the world. Silverline Technologies is ISO 9001 and SEI
CMM Level 4 certified with facilities in the United States, India, Canada, the
UK, Germany, Hong Kong, Japan, and Egypt. Silverline uses its global delivery
model to provide superior service, accelerated delivery and significant cost
savings to its network of worldwide clients. More information can be found at
www.silverline.com
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###
NOTE: Silverline(R) and the Silverline logo are trademarks of Silverline
Technologies Ltd. All other trademarks are the property of their owners.
SeraNova, the SeraNova logo, 'The Power of Approach', `i-team and N/able are
service marks of SeraNova in the United States and other countries.
Except for the historical information and discussions contained herein,
statements included in this release may constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from those
than may be projected by these forward-looking statements. These risks and
uncertainties include, but are not limited to competition, acquisitions,
attracting, recruiting and retaining highly skilled employees, technology, law
and regulatory policy and managing risks associated with customer projects as
well as other risks detailed in the reports filed by Silverline Technologies
Limited with the Securities and Exchange Commission. Silverline undertakes no
obligation to update forward-looking statements to reflect events or
circumstances after the date thereof.
<PAGE>
For further information please contact:
United States
-------------
Holly Weer (Investor Inquiries) David Levine (Media Inquiries)
Thomson Financial/Carson Silverline Technologies
Tel # 212 510 9282 Tel # 732 457 0200 Ext. 211
Fax # 212 363 3971 Fax # 732 457 0496
E-Mail: [email protected] E-Mail: [email protected]
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India
-----
Shiv Muttoo
Citigate Dewe Rogerson
Mumbai
Tel # 011 91 22 284 2728
Fax # 011 91 22 284 2561
E-Mail: [email protected]
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<PAGE>
<TABLE>
<CAPTION>
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SILVERLINE TECHNOLOGIES LTD
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Regd Office : 1405 Maker Chamber V, Nariman Point, Mumbai 400 021
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Unaudited financial results (provisional) for the quarter ended September 30 , 2000
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(Rs in Lacs)
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<S> <C> <C> <C> <C> <C> <C>
Quarter Ended Half Year ended Year ended
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31-03-2000
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30.9.2000 30.9.1999 30.9.2000 30.9.1999 (Audited)
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1 Net sales 7,179.01 4,643.11 13,675.56 8,716.720 19,528.23
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2 Other income 2,125.83 92.19 2,259.37 201.270 418.72
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3 Total income 9,304.84 4,735.30 15,934.93 8,917.99 19,946.95
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4 Staff cost 686.15 496.93 1,310.70 934.40 2,023.94
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5 Software development expenses (overseas) 2,757.42 1,736.38 5,458.59 3,410.57 8,022.33
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6 Other expenditure 695.94 384.46 1,217.07 780.41 1,898.64
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7 Total expenditure 4,139.51 2,617.77 7,986.36 5,125.38 11,944.91
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8 Operating profits (PBDIT) 5,165.33 2,117.53 7,948.57 3,792.61 8,002.04
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9 Finance charges 37.63 62.03 61.11 117.42 148.22
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10 Depreciation 243.47 236.65 483.56 435.15 798.79
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11 Profit before tax 4,884.23 1,818.85 7,403.90 3,240.04 7,055.03
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12 Provision for taxation 65.00 - 65.00 - 1.00
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13 Profit after tax before extraordinary items 4,819.23 1,818.85 7,338.90 3,240.04 7,054.03
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14 Extraordinary items - 84.00 - 84.00 (38.41)
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15 Net profit after tax and extraordinary items 4,819.23 1,734.85 7,338.90 3,156.04 7,015.62
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16 Paid-up equity share capital 7,320.00 6,000.00 7,320.00 6,000.00 6,450.00
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17 Reserves excluding revaluation reserves 39,012.59
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18 Earnings per share (EPS) in Rs .- Basic 7.31 3.70 11.14 6.74 11.96
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- Diluted 6.58 2.89 10.03 5.26 10.88
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</TABLE>
<PAGE>
Notes:
1. The above results have been approved and taken on record by the Board of
Directors at their meeting held on October 30, 2000.
2. Other income includes the following:
(i) Exchange gain from operations of Rs. 546.23 lacs for the quarter (exchange
loss during the corresponding quarter of the previous year of Rs. 16.52 lacs)
due to fluctuations in exchange rates.
(ii) Rs. 1,131.98 lacs arising during the quarter (Rs. Nil during the
correponding quarter of the previous year) from exchange differences on
translation of foreign currency current assets maintained abroad resulting from
the ADS issue. Excluding these gains, the net profit after tax is Rs. 3,687.25
lacs during the quarter ended September 30, 2000.
3. Overseas investments/ acquisitions:
During the quarter, the company has embarked upon the following overseas
investments/ acquisitions out of its ADR funds:
(i) the company made additional investments of US $ 30,230,141(equivalent of
Rs. 13,697.62 lacs) in the common stock of its existing wholly-owned
subsidiary, Silverline Technologies Inc, USA. The investment was made for the
purpose of:
a) expanding the sales and marketing operations and developing new distribution
channels by creating additional sales and marketing infrastructure.
b) meeting the working capital requirements for the expanded scope of the
business.
(ii) The Board of Directors have decided, in principle, to make a strategic
investment of U.S. $ 12.5 million (equivalent of Rs.5,753.75 lacs) to acquire a
6% stake in the equity stock of TIS Worldwide Inc., U.S.A., a U.S. based
software services company having operations in 10 offices across the country
with over 600 software professionals.
(iii) The company also decided to acquire the entire shareholding of Sky Capital
International Ltd., Hong Kong, (consisting of 2 million ordinary shares of Hong
Kong $ 1 each), a Hong Kong based I.T. consultancy company for a consideration
of U.S. $22 million (equivalent of Rs. 10,126.60 lacs).
4. At the meeting held on October 27, 2000, the Board approved the acquisition
of a U.S. based NASDAQ listed company, SERANOVA Inc., a global provider of
internet and e-commerce solutions for a consideration of U.S. $99 million in an
all-stock deal, subject to necessary regulatory approvals and shareholder
sanctions of both the companies.
5. Towards the American Depositary Shares (ADS) issue, the company incurred
expenses of US $9,787,953 (equivalent of Rs. 4,380.33 lacs). These expenses
have been charged to the premium realised from the ADS issue.
6. Basic & Diluted Earnings per share (EPS) have been calculated on profit after
tax but before extraordinary items.
On behalf of the Board of Directors
For Silverline Technologies Ltd.
/s/ Ravi Subramanian
Ravi Subramanian
Chairman
Place: Piscataway, New Jersey, USA.
Date: October 30, 2000
<PAGE>
<TABLE>
<CAPTION>
SILVERLINE TECHNOLOGIES LIMITED AND SUBSIDIARIES
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Regd Office : 1405 Maker Chamber V, Nariman Point, Mumbai 400 021, India.
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Consolidated income statement (unaudited) as per U.S. GAAP for the 3rd quarter ended September 30, 2000.
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in U.S. $
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Particulars Quarter ended Quarter ended Nine Months Nine Months Fiscal Audited
----------- ended ended
September 30, September 30, September 30, September 30, December 31,
2000 1999 2000 1999 1999
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<S> <C> <C> <C> <C> <C>
Sales 36,569,493 24,714,394 100,450,880 60,031,873 87,576,908
Cost of goods sold 18,810,527 13,912,309 52,378,683 33,193,994 49,445,513
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Gross profit 17,758,966 10,802,085 48,072,197 26,837,879 38,131,395
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Operating expenses :
Selling, general and administrative expenses 7,114,785 3,625,256 18,399,389 9,181,164 13,140,710
Deferred stock compensation amortization 114,877 - 1,838,157 - 532,065
Depreciation and amortization 1,095,108 1,066,272 3,233,675 3,170,687 4,095,227
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Total Operating Expenses 8,324,770 4,691,528 23,471,221 12,351,851 17,768,002
================================================================================
Operating Income 9,434,196 6,110,557 24,600,976 14,486,028 20,363,393
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Other income/(expenses), net 3,859,013 (285,238) 3,204,835 (1,046,057) (1,379,763)
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Income before income taxes 13,293,209 5,825,319 27,805,811 13,439,971 18,983,630
Provisions for income taxes 1,231,284 923,119 3,561,701 2,070,878 2,808,449
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Income before extraordinary items 12,061,925 4,902,200 24,244,110 11,369,093 16,175,181
Extraordinary items (net of taxes) - - - 374,624 374,624
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Net Income 12,061,925 4,902,200 24,244,110 10,994,469 15,800,557
================================================================================
No. of shares outstanding -Basic (weighted) 67,770,438 54,242,294 67,770,438 54,242,294 57,149,990
No. of shares outstanding -Diluted 68,647,648 65,271,460 68,647,648 65,271,460 65,596,505
Basic EPS - U.S. $ 0.18 0.09 0.36 0.21 0.28
Diluted EPS- U.S. $ 0.18 0.08 0.35 0.17 0.25
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</TABLE>
<PAGE>
Notes:
1. The above results have been approved and taken on record by the Board of
Directors at their meeting held on October 30, 2000.
2. Other income includes the following:
(i) Exchange gain from operations of U.S. $1,199,714 for the quarter (exchange
loss during the corresponding quarter of the previous year of $38,240) due to
fluctuations in exchange rates.
(ii) $2,486,229 arising during the quarter ($ Nil during the correponding
quarter of the previous year) from exchange differences on translation of
foreign currency current assets maintained abroad resulting from the ADS issue.
Excluding these gains, the net profit after tax is $9,575,696 during the quarter
ended September 30, 2000.
3. Overseas investments/ acquisitions:
During the quarter, the company has embarked upon the following overseas
investments/ acquisitions out of its ADR funds:
(i) the company made additional investments of US $30,230,141 in the common
stock of its existing wholly-owned subsidiary, Silverline Technologies Inc.,
U.S.A. The investment was made for the purpose of:
a) expanding the sales and marketing operations and developing new distribution
channels by creating additional sales and marketing infrastructure.
b) meeting the working capital requirements for the expanded scope of the
business.
(ii) The Board of Directors have decided, in principle, to make a strategic
investment of U.S. $12.5 million to acquire a 6% stake in the equity stock of
TIS Worldwide Inc., U.S.A., a U.S. based software services company having
operations in 10 offices across the country with over 600 software
professionals.
(iii) The company also decided to acquire the entire shareholding of Sky Capital
International Ltd., Hong Kong, (consisting of 2 million ordinary shares of HK $1
each), a Hong Kong based I.T. consultancy company for a consideration of U.S.
$22 million.
4. At the meeting held on October 27, 2000, the Board approved the acquisition
of a U.S. based NASDAQ listed company, SERANOVA Inc., a global provider of
internet and e-commerce solutions for a consideration of U.S. $99 million in an
all-stock deal, subject to necessary regulatory approvals and shareholder
sanctions of both the companies.
5. Towards the ADS issue, the company incurred expenses of US $9,787,953. These
expenses have been charged off to the premiums realized from the ADS issue.
6. Basic & Diluted Earnings per share (EPS) have been calculated on profit after
tax but before extraordinary items.
On behalf of the Board of Directors
For Silverline Technologies Ltd.
/s/ Ravi Subramanian
Ravi Subramanian
Chairman
Place: Piscataway, New Jersey, USA
Date: October 30, 2000
