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 $50.7 million in cash and cash equivalents, and $276.6 million in other assets. Total current and long-term liabilities were reported at $355.3 million. Stockholders’ equity totals approximately $391.7 million providing a book value per share of $9.94, which is significantly higher than the current market price.

For the second quarter of 2009, Ness Technologies reported revenues of $137.2 million, a decrease of 20% from last year; however half of the decrease was caused by foreign currency translation effects on non-dollar revenues. During the last two quarters, special attention was given to cost management and as a result the company was able to remain profitable and become much more efficient. The initiatives will benefit Ness Technologies well into the future as the economy recovers.

Currently, 0.04% of the shares outstanding are held by insiders and 75.4% are held by institutions. Two analysts believe the company is a “Strong Buy” and one believes it’s a “Buy”. Next year analysts expect earnings per share of $0.54 compared to this year’s $0.41. Next year’s revenues are anticipated to total $592.0 million versus this year’s $568.2 million. Over the past five years, sales have increased at an average rate of 24.11% and net income growth has far outpaced the industry’s average at 62.66%.

Key statistics (2/9/10):

Market cap: $214 Million
P/E Ratio: 28.5 versus industry average of 11.1
P/S Ratio: 0.37 versus industry average of 1.00
Price/Cash Flow Ratio: 7.70 versus industry average of 9.10

Debt/Equity Ratio: 0.23 versus industry average of 0.44
Current Ratio: 1.6 versus industry average of 2.4
Quick Ratio: 1.6 versus industry average of 2.4
Book Value/Share: $9.94 versus current market price of $5.57

Return on Equity: 1.9% versus industry average of 13.4%
Return on Assets: 1.1% versus industry average of 7.9%
Return on Capital: 1.4% versus industry average of 10.3%
5-Year average ROE: 7.6% versus industry average of 12.6%

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