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IGATE Reports Resilient 2012; Net Income Up 110% Year Over Year

Stocks in this article: IGTE

FREMONT, Calif., Jan. 17, 2013 (GLOBE NEWSWIRE) -- iGATE Corporation (iGATE or the Company) (Nasdaq:IGTE), the first integrated Technology and Operations (iTOPS) company providing "Business Outcomes" based solutions, today announced its financial results for the fourth quarter and year ended December 31, 2012.

Fourth Quarter Highlights

  • Revenues for the fourth quarter of 2012 were $271.6 million
  • Compared with $267.7 million in the fourth quarter of 2011
  • Compared with $271.1 million in the third quarter of 2012
  • Net Income attributable to iGATE Corporation for the fourth quarter of 2012 was $32.2 million
  • Compared with $15.3 million in the fourth quarter of 2011
  • Compared with $28.3 million in the third quarter of 2012
  • Gross margin was 40.6% for the fourth quarter of 2012
  • Compared with 40.3% in the fourth quarter of 2011
  • Compared with 39.8% in the third quarter of 2012
  • Diluted earnings per share for the fourth quarter of 2012 were $0.31 GAAP and $0.47 non-GAAP
  • Compared with $0.11 GAAP in the fourth quarter of 2011 and $0.27 non-GAAP in the fourth quarter of 2011
  • Compared with $0.27 GAAP in the third quarter of 2012 and $0.46 non-GAAP in the third quarter of 2012
  • Adjusted EBITDA was $71.9 million for the fourth quarter of 2012
  • Compared with $68.1 million in the fourth quarter of 2011
  • Compared with $68.6 million in the third quarter of 2012
  • The Company added 14 new customers during the fourth quarter, including seven Fortune 1000 companies
  • As of December 31, 2012, the Company had 27,554 employees

Full Year Highlights

  • Revenues for the year ended December 31, 2012 were $1,073.9 million
  • Compared with $779.6 million for the year ended December 31, 2011
  • Net Income attributable to iGATE Corporation for the year ended December 31, 2012 was $97.2 million
  • Compared with $51.5 million for the year ended December 31, 2011
  • Gross margin was 39.5% for the year ended December 31, 2012
  • Compared with 38.0% for the year ended December 31, 2011
  • Diluted earnings per share were $0.87 GAAP and $1.58 non-GAAP
  • Compared with $0.38 GAAP and $0.89 non-GAAP for the year ended December 31, 2011
  • Adjusted EBITDA was $272.1 million for the year ended December 31, 2012
  • Compared with $173.5 million for the year ended December 31, 2011

On the performance of the Company in 2012, Phaneesh Murthy, Chief Executive Officer, iGATE, said, "I am happy that we achieved high earnings growth in 2012. I am also pleased with the increased acceptance of our iTOPS model among our customers and prospects with a large chunk of our customer pipeline and recent wins coming from our outcomes-based proposition."

"I believe that our recently launched brand campaign will continue to improve our customer pipeline in this area," he added.

Sujit Sircar, Chief Financial Officer, iGATE, said, "I am pleased with the results of our corporate restructuring in 2012. We successfully carried out the delisting process in India and further completed the consolidations of our U.S. subsidiaries. I am happy with the operating cash flow generation of more than $100 million in 2012 and our cash/investment exceeding $600 million as of Dec 31 of the year."

Srinivas Kandula, EVP and Global Head, HR, iGATE said, "We have been ranked the Best IT Employer in the Dataquest-CMR Survey, reinstating our top position in India. For the first time, we participated in the 'Best Employer Survey' in Canada conducted by Aon Hewitt and Queen's University, and I am pleased that we have been ranked No. 2 in that survey. This conforms to our stated mission of being among the top three employers in the various talent markets in which we operate."

Fourth Quarter and Fiscal Year 2012 Operating Results

Results of the fourth quarter and full fiscal year for 2012 and 2011, on GAAP and non-GAAP basis, are provided in the table below.

  Q4 FY12 Q4 FY11  Y/Y FY12 FY11 Y/Y
Net revenue ($Millions) 271.6 267.7 1% 1073.9 779.6 38%
Operating margin ($Millions)  57.1 51.5 11% 207.0 105.9 95%
GAAP net income ($Millions) 32.2 15.3 110% 97.2 51.5 89%
GAAP diluted EPS ($) 0.31 0.11 182% 0.87 0.38 129%
Non-GAAP net income ($Millions) 36.3 20.1 81% 122.4 67.0 83%
Non-GAAP diluted EPS ($) 0.47 0.27 74% 1.58 0.89 78%

Key New Customers during the Fourth Quarter

  • A Fortune 100 company, one of the largest supplemental insurance providers in the U.S., engaged iGATE to launch a senior care insurance product in a short timeframe. Through its state-of-the-art iTOPS TPA platform, iGATE ensured that the cost of administration of the insurance product will be variable with a low percentage of premiums, ensuring high margins and profitability for the client.  
  • The judiciary department of a U.S. state has engaged iGATE to improve the timeliness and quality of its judicial services. As part of the engagement, iGATE will provide technical consulting services to enhance the functionalities of the state's judicial management system, improving the system's development and implementation of case management requirements.  
  • A Fortune 1000 U.S.-based company with a global presence in servicing pharmaceutical and biotech companies, hospitals and clinical diagnostic labs, hired iGATE to help it improve its operational efficiency through the adoption of mobility practices. iGATE will formulate an enterprise-wide mobility strategy and provide its expertise in mobile application development enabling secure mobile commerce across the client's applications, devices and platforms. These practices and strategies are intended to improve the client's productivity, reduce its operational costs and improve customer satisfaction.  
  • The medical devices group of a worldwide designer and manufacturer of precision motion control products engaged iGATE to help design and develop its next generation "smart pumps." These pumps, which will be implemented in infusion therapy, post-operative pain management and enteral nutrition, may also be utilized in a wide spectrum of this market segment, including the intensive care, ambulatory care and alternate care segments.  
  • A Fortune 1000 company in the U.S. that works with agricultural products, specialty chemicals and industrial chemicals engaged iGATE to facilitate its "Business Transformation" program. As part of this engagement, iGATE will implement SAP enterprise systems across the client's multiple locations.  
  • A global semiconductor-manufacturing firm contracted with iGATE to reduce its manufacturing costs and improve its profitability. iGATE will deploy its product and engineering skills to redesign and optimize the client's manufacturing execution system. The redesigned system is expected to enhance the client's production efficiency.

Awards and Highlights

  • iGATE was ranked India's Best Employer for the Year 2012 in the Dataquest-CMR Best Employers' Survey and retains its position in the top three employers for the sixth consecutive year.  
  • iGATE was ranked No.2 in the 'Best Employer Survey in Greater Toronto Area' conducted by Aon Hewitt in collaboration with Queen's University, Canada.  
  • iGATE was awarded the prestigious Golden Peacock Innovation Management Award for the year 2012 in the 'Information Technology' category.  
  • iGATE received a 'Best In Class Global Excellence Award' from the Asia Pacific Quality Organization.  
  • iGATE won first prize for its paper on "Software Project Success Prediction Model based on Binary Logistics Regression & Artificial Neural Network (ANN)" which was presented at ICONQROR-2013 (International Conference on Quality, Reliability and Operations Research).  
  • iGATE reported a 22% reduction in its carbon footprint per employee per year from 4.23 tons in 2008 to 3.29 tons in 2012.

Conference Call and Webcast

The Company has scheduled its Earnings Conference Call on Thursday, January 17, 2013 to discuss the results of its fourth quarter and full year ended December 31, 2012. Senior management of the Company will discuss the Company's financial performance for the quarter and answer participants' questions during the call.

Time:   08.00-9.00 am Eastern Time / 05.00-06.00 am Pacific Time
Toll Free:   877-407-8037 
Toll:   201-689-8037 

The call will be webcast live on iGATE's website ( www.igate.com ) on the Investor Relations page under the section titled "Events." Participants are requested to log in 10 minutes prior to the start of the webcast. The on-demand version of the webcast will be available on the iGATE website shortly after the call.

Investors, potential investors, shareholders and bond holders can access the telephonic replay by dialing 877-660-6853 (toll free) or 201-612-7415 (toll) and entering conference number 406952. The telephonic replay will be available until January 24, 2013.

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