Revenue for the first quarter of 2011 stood at $75.8 million, up 52.6% from the same period last year. Gross margin improved to 40.9% from 40.1% during the prior-year quarter. Net income rose to $17.9 million from $11.6 million from the same period last year.
Reviewing the first quarter results, the company's CEO Phaneesh Murthy said, "Delays in clients' budgets created softness in the market which was further exacerbated by our focus on the Patni acquisition creating a sequentially weak quarter for iGATE."Commenting on Patni's acquisition, Sujit Sircar, iGate's COO, says, "The process of acquiring Patni Computer Systems is on track and we expect the transaction to be completed shortly. We have raised $770 million through a bond issue to fund the acquisition. From calendar Q2, we will be reporting consolidated financials for iGATE." The stock is trading at 18 times its 2011 earnings with a potential to deliver up to 33% in the next one year.