The VARBusiness Profitability Scorecard
A Peek Into Profitability
12:09 PM EDT Thu. Sep. 23, 2004
VARBusiness is proud to present its first Profitability Scorecard. The comprehensive package offers our readers a snapshot of the quarterly activities (in this case, the second quarter) of publicly held service providers. We feature only companies that distinguish service revenues, either as a pure-play or a breakout, to present a look at who's hot and who's not in the current market. Our only exceptions: IBM Global Services and HP Services, which are just too important to exclude.
The Scorecard offers three telling information points about each company: its second-quarter (or most recent three months) net income, operating income and revenue, and the percentage change from each quarter. It also lists each VAR's 2004 rank in the VARBusiness 500. (See "Profitability Scorecard: Summary of Company Percentages " for additional stats about solution providers that posted atypical results.)
The Scorecard ranks the companies according to their second quarter 2004 revenues. While overall results are consistent with the marketplace and individual company long-range profitability fever charts, in some cases outstanding situations can skew results. We suggest reading all entries entered on a specific company to get a comprehensive picture. For example, Plano, Texas-based EDS (ranked No. 2 in the VARBusiness 500) rates extremely well during its second quarter in net income, but its operating income, which is down 124 percent from the first quarter, paints a fuller picture of a giant integrator fighting to regain footing.
For all the juicy info and more, dig into the stats.
| In Millions of Dollars | NET INCOME | REVENUE | OPERATING INCOME | % CHANGE OF 2Q '04 VS. 1Q '04 | |||||
| Company Name (VAR500 Rank) | 2Q '04 | % Change from 2Q '03 | 2Q '04 | % Change from 2Q '03 | 2Q '04 | % Change from 2Q '03 | Net Income | Revenue | Operating Income |
| IBM Global Services (1)* | $2,754.5 | 20.9% | $10,635.0 | 22.8% | NA | NA | 1.3% | -4.2% | NA |
| EDS (2) | $270.0 | 206.8% | $5,238.0 | 3.5% | ($84.0) | -145.7% | 2350.0% | 0.8% | -124.0% |
| Accenture (5) | $210.0 | 59.1% | $4,050.0 | 18.5% | $575.0 | 42.3% | 70.7% | 10.0% | 38.6% |
| Computer Sciences Corp. (CSC) (3) | $110.4 | 19.6% | $3,736.4 | 5.1% | $162.8 | 22.3% | -42.1% | -6.6% | -40.3% |
| Hewlett-Packard Services (4)** | $329.0 | 9.3% | $3,500.0 | 15.0% | NA | NA | 27.5% | 9.4% | NA |
| Concord EFS (First Data) (32) | $466.0 | 31.7% | $2,529.1 | 21.6% | $577.7 | 23.3% | 864.8% | 12.0% | -17.0% |
| Automatic Data Processing (ADP) (9) | $211.9 | -2.2% | $2,085.8 | 9.1% | $338.5 | -2.8% | -29.4% | -1.7% | -29.4% |
| CDW (16) | $58.3 | 33.6% | $1,382.9 | 28.6% | $95.1 | 35.0% | 5.4% | 3.5% | 5.5% |
| IKON Enterprise Services (37) | $8.1 | -44.6% | $1,163.2 | -1.3% | $60.9 | -4.5% | -73.0% | - 1.8% | 23.1% |
| Affiliated Computer ServIces (19) | $97.0 | 15.6% | $1,062.0 | 11.2% | $153.0 | 9.3% | -3.0% | 5.3% | 0.0% |
| Fiserv (28) | $95.0 | 21.2% | $946.0 | 30.8% | $160.3 | 21.4% | 2.4% | 0.9% | 2.2% |
| BearingPoint (24) | $15.2 | 47.3% | $885.5 | 13.5% | $39.8 | 40.4% | 659.1% | 2.8% | 165.2% |
| Insight Enterprises (26) | $13.0 | 59.5% | $769.1 | 6.0% | $23.0 | 64.3% | -21.5% | 5.0% | 9.0% |
| CGI Group (41) | $46.4 | 29.3% | $661.3 | 22.6% | $39.6 | 11.1% | 18.3% | 19.5% | 1.1% |
| Convergys (38) | $28.7 | -32.9% | $601.7 | 6.8% | $46.2 | 550.7% | -11.7% | 4.8% | -15.8% |
| SABRE Holdings (36) | $58.9 | 766.2% | $550.9 | 8.6% | $88.4 | 118.8% | 37.0% | -89.8% | 27.2% |
| Titan Corp. (The) (42) | ($66.6) | -1,234.7% | $514.9 | 18.7% | ($23.1) | -173.4% | -2,275.6% | 13.4% | -255.6% |
| Perot Systems (45) | $21.9 | 346.9% | $433.8 | 20.5% | $34.1 | 487.9% | 16.8% | 3.3% | 10.1% |
| Wipro InfoTech (76) | $71.0 | 84.4% | $385.0 | 52.3% | $78.0 | 76.1% | 5.3% | -5.2 | -6.0% |
| CompuCom Systems (46) | ($22.3) | -780.8% | $341.9 | -9.5% | ($30.6) | -651.9% | -1,401.2% | 14.0% | -1,195.6% |
| PC Connection (47) | $2.3 | 60.8% | $335.3 | 4.3% | $3.9 | 54.4% | 94.8% | 2.4% | 78.0% |
| Modis (Now part of MPS) (80) | $9.3 | 60.6% | $333.2 | 22.0% | $12.1 | 11.0% | 75.6% | 7.3% | 50.4% |
| BMC Software (198) | $52.0 | 966.7% | $326.0 | 5.2% | $13.0 | 148.1% | 40.5% | -18.5% | -50.0% |
| Anteon (74) | $14.7 | 42.3% | $304.2 | 19.7% | $24.9 | 23.0% | 10.0% | 5.6% | 5.9% |
| Siebel Global Services (59) | $8.2 | -15.9% | $301.1 | -9.7% | $4.0 | -20.9% | 77.9% | -9.5% | 222.6% |
| Acxiom (57) | $12.9 | 14.4% | $289.0 | 22.1% | $24.4 | 117.6% | -19.0% | 4.0% | -8.8% |
| Compuware Professional SVCS (70) | $0.6 | -75.3% | $287.1 | -6.2% | ($3.2) | -117.4% | -98.1% | -15.0% | -101.1% |
| PC Mall (54) | $0.7 | -25.3% | $270.5 | 23.6% | $1.7 | -9.5% | 6,970.0% | -2.7% | 2,666.7% |
| Bisys Group (The) (56) | $18.0 | -41.9% | $267.2 | 8.0% | $33.3 | -35.9% | 466.2% | -1.9% | 316.7% |
| Reynolds & Reynolds (64) | $22.0 | -16.0% | $242.8 | -3.0% | $38.2 | -14.7% | -16.5% | -2.7% | -10.5% |
| GTSI (58) | ($1.6) | -235.2% | $239.0 | 26.0% | ($3.1) | -369.9% | -12.5% | 33.8% | 14.7% |
| Keane (63) | $8.1 | 21.9% | $231.7 | 13.9% | $13.3 | 16.1% | 46.7% | 7.4% | 52.9% |
| Cerner (62) | $14.3 | 60.1% | $228.4 | 10.0% | $25.9 | 58.5% | 1.3% | 4.4% | 15.1% |
| CIBER (71) | $7.9 | 15.8% | $208.3 | 17.6% | $13.9 | 22.3% | 32.9% | 15.7% | 43.4% |
| MacDonald Dettwiler & Assoc. (116) | $13.4 | 29.4% | $192.0 | 30.2% | $22.2 | 17.4% | 22.2% | 19.2% | -7.5% |
| Sybase (Services) (81) | $12.8 | -11.9% | $188.0 | -2.1% | $16.0 | -12.0% | -2.8% | 2.7% | -8.7% |
| SRA International (85) | $11.9 | 40.1% | $180.9 | 42.3% | $18.9 | 40.4% | 65.6% | 55.4% | 64.6% |
| Pomeroy IT Solutions (75) | $3.1 | 53.3% | $178.2 | 20.9% | $5.1 | 58.1% | 34.2% | 14.8% | 34.3% |
| Parametric Technology Corp. (PTC) (69) | $16.1 | 147.8% | $168.4 | 1.9% | $22.7 | 178.9% | 404.2% | 2.2% | -7.3% |
| MAXIMUS (225) | $9.9 | 10.8% | $160.2 | 13.0% | $16.1 | 11.3% | 4.4% | 6.3% | 4.8% |
| Infonet Services Corp. (72) | ($15.8) | 20.4% | $157.6 | 5.7% | ($15.6) | 20.1% | -73.3% | -7.8% | -137.0% |
| Cognizant Technology Solutions (102) | $23.8 | 76.3% | $138.7 | 58.6% | $27.8 | 62.2% | 20.2% | 15.9% | 17.8% |
| Intergraph (77) | $15.2 | 1,800.0% | $138.4 | 9.0% | $9.5 | 227.6% | -88.8% | 4.1% | 15.9% |
| IDX Systems (97) | $8.1 | -7.9% | $130.4 | 32.7% | $11.7 | 50.0% | 405.1% | 27.1% | 367.6% |
| Softchoice (98) | $3.8 | 226.6% | $128.8 | 27.9% | $6.4 | 197.1% | 340.6% | 13.0% | 278.7% |
| Jack Henry & Associates (93) | $17.6 | 24.9% | $126.0 | 15.4% | $29.2 | 31.8% | 8.1% | 5.3% | 14.3% |
| Black Box Network Services (73) | $10.0 | -13.0% | $124.4 | -3.1% | $15.9 | -13.3% | -13.0% | -4.1% | 11.1% |
| Zones (91) | $1.2 | 1,020.8% | $124.0 | 4.1% | $2.0 | 1,025.0% | 45.5% | 8.7% | 42.4% |
| Geac (92) | $22.6 | 1,096.7% | $116.1 | 13.2% | $22.8 | 1,106.1% | 56.4% | -0.1% | 18.1% |
| Sykes Enterprises (83) | $1.1 | -57.9% | $113.5 | -4.6% | ($0.3) | -109.8% | 340.2% | -6.3% | 61.6% |
| SAP Systems Integration (106) | $10.7 | 78.1% | $104.5 | 32.2% | $16.6 | 66.2% | 61.8% | 14.1% | 32.7% |
| DigitalNet (107) | $4.9 | 347.7% | $97.6 | 18.4% | $10.2 | 73.3% | 7.2% | 20.9% | 11.3% |
| Digitas (141) | $7.6 | 159.5% | $96.3 | 32.7% | $88.8 | 27.4% | 1.7% | 7.2% | 7.8% |
| Covansys (100) | $4.5 | 28,487.5% | $94.1 | -2.2% | $5.6 | 3,098.9% | 254.1% | 4.1% | 224.8% |
| Progress Software (144) | $8.1 | 20.9% | $90.8 | 17.1% | $11.5 | 25.2% | 74.2% | 5.1% | 81.1% |
| Per-Se Technologies (178) | $2.4 | -22.0% | $88.1 | 3.1% | ($1.4) | -127.7% | 134.1% | 4.2% | -135.9% |
| Analysts International (109) | $0.7 | 520.2% | $86.9 | 5.2% | $0.7 | 488.1% | 55.5% | 1.7% | 57.5% |
| En Pointe Technologies (119) | $0.5 | 222.0% | $82.9 | 18.4% | $0.7 | 345.6% | 132.7% | 35.2% | 109.4% |
| TIBCO Software Services (184) | $9.6 | 1,613.9% | $81.2 | 32.2% | $15.9 | 364.9% | 12.5% | 9.2% | 22.8% |
| First Consulting Group (126) | $1.0 | 129.2% | $72.4 | -4.0% | $1.8 | 132.9% | 262.7% | 3.3% | 22.2% |
| Sapient (151) | $5.7 | 229.5% | $68.0 | 45.4% | $62.7 | 22.2% | 337.8% | 11.4% | 4.4% |
| NetIQ (205) | ($6.9) | 97.9% | $67.9 | -6.5% | ($6.9) | 97.9% | 34.8% | 1.5% | 38.4% |
| TriZetto Group (The) (117) | $0.4 | 131.7% | $67.5 | -13.1% | $0.9 | 204.2% | 109.9% | 2.7% | 122.2% |
| iGate (120) | ($5.7) | -504.7% | $65.9 | 8.7% | ($5.5) | -502.6% | -225.5% | -14.7% | -172.3% |
| Computer Horizons (132) | $0.8 | 108.6% | $65.8 | 11.8% | $6.5 | 41.6% | 20,325.0% | 10.1% | 29.4% |
| Dynamics Research (133) | $2.2 | 99.5% | $65.0 | 4.5% | $4.1 | 18.5% | 7.6% | 4.6% | 22.0% |
| Butler International (142) | $1.1 | 108.1% | $63.1 | 22.0% | $2.3 | 112.9% | 597.4% | 8.9% | 82.7% |
| Novell Ngage (and Services) (87) | $10.3 | 135.9% | $60.3 | -6.5% | $14.5 | 164.2% | 1.5% | -77.4% | 3.3% |
| Computer Task Group (CTG) (129) | $0.6 | 32.1% | $59.0 | -5.3% | $0.8 | -54.9% | 117.1% | -3.9% | -42.8% |
| QAD (135) | $5.6 | 24.3% | $58.2 | 3.4% | $5.3 | 29.3% | -11.7% | -90.7% | -22.6% |
| Norstan (136) | ($4.6) | -373.3% | $57.5 | -2.6% | ($6.8) | -516.5% | -992.9% | 4.4% | -674.2% |
| Wind River (237) | ($3.8) | 64.7% | $52.8 | 8.7% | ($3.5) | 70.3% | -363.9% | -5.0% | -284.6% |
| Diamond Cluster International (168) | $3.4 | 134.2% | $51.6 | 31.5% | $3.3 | 133.0% | 7.5% | 3.6% | 39.7% |
| Vignette Services (217) | ($6.2) | -619.4% | $46.8 | 16.1% | ($7.1) | -280.6% | 74.7% | 18.0% | 71.5% |
| MRO Software (154) | $3.1 | 53.1% | $46.3 | -2.8% | $4.4 | 56.1% | 120.7% | 3.8% | 143.5% |
| Syntel (153) | $9.4 | -8.3% | $45.8 | 4.4% | $10.8 | -18.6% | 0.9% | 1.7% | 6.1% |
| PEC Solutions (156) | $3.7 | -19.4% | $44.5 | 0.5% | $6.1 | -20.1% | 4.2% | 10.2% | 3.2% |
| Tyler Technologies (193) | $3.0 | 50.2% | $44.3 | 22.5% | $5.0 | 63.1% | 42.3% | 6.8% | 48.6% |
| Bell Industries (223) | $0.8 | 275.9% | $43.8 | 11.3% | $0.8 | 187.2% | 218.3% | 27.3% | 214.3% |
| Manchester Technologies (121) | $0.0 | -88.5% | $42.4 | 16.2% | $0.8 | 43.9% | -99.0% | -46.8% | 58.0% |
| MAPICS (191) | $2.2 | -28.3% | $41.8 | -11.2% | $3.6 | 109.3% | 1.9% | -5.0% | 5.0% |
| Tier Technologies (181) | $0.9 | -57.0% | $40.7 | -4.6% | $0.9 | -57.4% | -139.9% | 37.3% | -15.3% |
| Telecommunications Systems (TCS) (221) | $0.9 | 107.6% | $40.4 | 101.4% | $1.8 | 116.0% | 125.0% | 23.5% | 171.0% |
| Indus International (177) | ($9.9) | -101.6% | $38.6 | 0.9% | $0.1 | 117.2% | -1,625.2% | -3.1% | -86.7% |
| Answerthink (179) | ($1.2) | 79.8% | $37.6 | 19.5% | ($1.9) | 68.6% | -225.0% | 7.3% | -328.2% |
| Xanser (175) | $0.9 | 106.9% | $35.7 | 7.3% | $1.6 | 134.7% | 690.0% | 10.9% | 314.6% |
| Epiq Systems (274) | $4.0 | 10.6% | $34.9 | 104.3% | $7.1 | 6.7% | 129.8% | 34.2% | 46.1% |
| RAND A Technology Corp. (138) | $4.6 | 120.3% | $34.9 | -17.6% | $4.6 | 128.6% | 183.0% | 12.8% | 241.8% |
| Digital River (211) | $6.8 | 144.2% | $34.9 | 53.2% | $6.9 | 173.3% | -11.3% | 9.5% | -8.4% |
| techteam global (230) | $1.1 | 175.6% | $30.7 | 40.0% | $1.8 | 181.8% | 72.6% | 1.4% | 52.1% |
| MatrixOne (272) | $0.4 | 112.0% | $30.0 | 14.3% | $0.0 | 100.9% | 115.7% | 3.7% | 101.1% |
| Carreker (180) | ($0.8) | 72.6% | $29.8 | 5.3% | ($1.2) | 51.5% | -157.8% | -10.0% | -213.9% |
| Superior Consultant (215) | $0.3 | 189.9% | $28.9 | 15.9% | $0.6 | 334.5% | 86.0% | 10.2% | 24.7% |
| Sierra Systems Group (196) | ($0.2) | -646.9% | $28.5 | -3.2% | $0.2 | -87.8% | -105.8% | -7.2% | -69.2% |
| Echelon (189) | $1.5 | 124.6% | $28.3 | -9.5% | $1.1 | 114.5% | 38.0% | 4.6% | 58.7% |
| VitalWorks (197) | $0.0 | -99.8% | $27.9 | -1.1% | $0.4 | -91.0% | 100.4% | 4.2% | 123.2% |
| Nexxlink Technologies (275) | $0.9 | 77.9% | $27.8 | 40.6% | $1.5 | 75.4% | 11.7% | -7.7% | 4.3% |
| SS&C Technologies (332) | $4.4 | 61.4% | $24.5 | 53.9% | $7.2 | 71.8% | 17.1% | 27.6% | 18.9% |
| Datastream Systems (224) | $1.5 | 509.2% | $23.8 | 1.9% | $2.3 | 32.2% | 17.1% | 3.2% | 24.9% |
| Alliance Consulting (229) | ($1.5) | 0.0% | $23.8 | 14.4% | ($1.5) | 0.0% | -400.0% | 1.3% | -400.0% |
| Secure Computing (249) | $2.5 | 149.6% | $22.1 | 25.5% | $2.4 | 106.9% | 14.2% | 4.3% | 17.4% |
| Datalink (226) | ($1.0) | -454.3% | $21.5 | -18.6% | ($1.0) | -398.6% | 44.0% | 6.2% | 43.7% |
| NaviSite (282) | ($3.0) | 73.2% | $20.2 | 2.9% | ($2.4) | 70.2% | 12.0% | -9.6% | 16.2% |
| Meta solv (290) | ($4.7) | 49.5% | $19.9 | -8.8% | ($4.8) | 50.6% | -51.5% | 1.7% | -131.0% |
| Entrust (232) | ($2.6) | 88.4% | $19.5 | -13.0% | ($2.9) | 85.0% | -591.9% | -15.2% | -1,805.4% |
| RCG Information Technology (254) | ($2.9) | -317.0% | $19.2 | 10.4% | ($3.2) | -148.5% | -1,708.2% | 2.7% | -2,691.0% |
| Captaris (240) | ($0.1) | 26.3% | $18.2 | 0.3% | ($0.5) | 36.0% | -180.0% | 0.1% | -77.8% |
| eLoyalty (286) | ($0.4) | 85.8% | $18.2 | 10.8% | ($0.5) | 84.0% | 81.2% | 26.0% | 79.2% |
| Idea Integration (264) | $9.3 | 60.6% | $17.1 | -14.6% | $12.1 | 11.0% | 75.6% | 3.8% | 50.4% |
| Critical Path (259) | $9.1 | 11.5% | $17.0 | -6.2% | $13.3 | 21.5% | 190.9% | -0.4% | 213.6% |
| Radware (316) | $3.0 | 153.3% | $16.3 | 23.7% | $2.1 | 589.4% | 10.0% | 5.0% | 22.7% |
| Modem Media (267) | $0.0 | 0.0% | $15.9 | 3.9% | $5.1 | -10.6% | -100.0% | 4.2% | -14.0% |
| TROY Group (306) | $0.0 | -78.9% | $14.4 | 7.7% | $0.0 | -84.5% | -87.5% | 5.9% | -91.2% |
| Inforte (416) | $0.2 | -57.4% | $13.8 | 50.1% | $0.1 | -51.8% | -56.0% | 49.2% | -20.6% |
| Halifax (337) | $91.0 | 78.4% | $13.4 | 25.2% | $0.3 | 43.7% | 2,294.7% | 3.1% | 39.5% |
| Descartes Systems Group (263) | ($28.9) | -220.8% | $13.3 | -6.6% | ($28.7) | -241.7% | -581.9% | -18.5% | -627.0% |
| XETA Technologies (326) | $0.4 | 31.0% | $13.2 | 12.1% | $0.6 | -6.6% | -27.0% | -22.1% | -37.7% |
| Aether Systems (311) | ($49.8) | -238.6% | $12.4 | -14.1% | ($43.9) | -366.1% | -644.9% | -0.4% | -422.3% |
| Verso (301) | ($6.3) | -1,506.1% | $11.3 | -28.5% | ($6.1) | -8,421.9% | -68.1% | -31.6% | -73.6% |
| Perficient (426) | $0.8 | 356.9% | $11.3 | 62.6% | $1.3 | 257.7% | 30.5% | 35.3% | 30.6% |
| Manatron (375) | $1.0 | 81.9% | $11.3 | 7.3% | $1.6 | 115.1% | 23.5% | 25.0% | 109.0% |
| Online Resources (390) | $1.2 | 911.5% | $10.1 | 19.6% | $1.2 | 270.3% | 186.6% | 3.1% | 193.3% |
| Terremark Worldwide (500) | ($4.4) | -15.7% | $7.9 | 129.4% | $12.3 | 70.0% | 15.9% | 34.8% | 11.0% |
| Braun Consulting (404) | ($1.9) | 40.1% | $7.6 | -7.8% | ($1.9) | 40.5% | 22.4% | -23.7% | 21.6% |
| Daou Systems (366) | ($1.0) | -211.2% | $7.2 | -40.3% | ($1.0) | -221.4% | -4.7% | -24.2% | -4.7% |
| Blue Martini Services (399) | ($4.1) | 14.2% | $7.2 | -8.8% | ($4.2) | 17.2% | -23.0% | -19.2% | -17.9% |
| Sento (494) | ($0.2) | 71.0% | $6.6 | 58.1% | $0.0 | 99.0% | 48.8% | -17.5% | 96.9% |
| A Consulting Team (The) (469) | $0.3 | 234.8% | $6.3 | 20.3% | $0.3 | 259.7% | 35.5% | 9.4% | 22.7% |
| Click Commerce (487) | $1.2 | 122.5% | $6.2 | 22.2% | $1.2 | 122.8% | 38.4% | 17.8% | 47.9% |
| SteelCloud (412) | ($0.3) | -332.0% | $5.8 | -29.5% | ($0.3) | -318.1% | 80.3% | 39.1% | 80.6% |
| Numerex (482) | ($0.7) | 53.3% | $5.8 | 21.9% | ($0.5) | 64.0% | 12.2% | 68.5% | 43.8% |
| Management Network Group (462) | ($2.1) | 88.7% | $5.2 | 4.5% | ($2.2) | 90.1% | 50.2% | -10.3% | -13.2% |
| Edgewater Technology (449) | $0.0 | -126.2% | $2.4 | -18.1% | ($0.2) | -3.4% | -166.2% | -6.7% | -272.0% |
| Commerce One Global Services (401) | ($5.1) | 16.1% | $2.0 | -76.3% | ($6.0) | 24.9% | 30.1% | -27.2% | -22.3% |
* IGS reports gross margins, not net income ** HPS reports operating profits, not net income
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