Early last year, Sapient's co-chief executives, J. Stuart Moore and Jerry Greenberg, agreed they would restrict the mission of their computer consulting business to an area they thought held huge potential: the Internet.
In their decision to embrace the Internet, Sapient's leaders Jerry Greenberg and J. Stuart Moore lived up to the definition of their firm's name: wise. (Globe File Photo)
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Timing is everything. The Internet industry exploded last year as Fortune 500 corporations scrambled to go online and start-up companies formed at a frenzied pace to exploit an untapped World Wide Web.
As Nasdaq climbed and competitors waffled, Sapient charged headlong into becoming an Internet-only consultancy. ''We really found ourselves in the sweet spot of the [consulting] industry,'' said chief financial officer Edward Goldfinger.
The financial results have been sweet, too. Whereas most firms in the Internet business are losing money, Sapient earned a tidy profit by helping its US and European clients get online, including IBM Corp., Bank of America, Amoco Oil Co., Nordstrom Inc., United Airlines Inc., Adobe Systems Inc., Procter & Gamble, and the Swiss bank Pictet & Cie.
Sapient's revenues soared 68 percent in 1999 to $276.8 million, and profits ballooned to $30.3 million, more than triple the previous year. First-quarter profits this year accelerated to $11.9 million on revenues of $100.3 million.
As a result, Sapient jumped to third - from 11th the prior year - on The Boston Globe's Growth 50, which is ranked by average two-year growth in sales and profits. Sapient rose to number 18 - up from number 67 - on The Globe 100, a separate ranking based on a composite of four measures: total sales, return on average equity, and one-year change in revenues and profit margins.
The company achieved what it called a new ''milestone'' this month when its stock replaced Reynolds Metals Co. in the Standard & Poor's 500 stock market index.
High-flying Sapient is not inured to risk in an industry known for vicious competition. Morever, if the Nasdaq continues to slide, the company could lose some clients.
But Goldfinger said 82 percent of Sapient's clients are established companies - the rest are dot-com start-ups. ''We see demand being very strong for the foreseeable future.''
KIMBERLY BLANTON