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IGATE Reports Steady First Quarter; Profits Up 44%

Stocks in this article: IGTE

FREMONT, Calif., April 11, 2013 (GLOBE NEWSWIRE) -- iGATE Corporation (Nasdaq:IGTE), the first Business Outcomes driven integrated Technology and Operations (iTOPS) solutions provider, today announced its financial results for the first quarter ended March 31, 2013.

First Quarter Highlights

  • Revenues for first quarter 2013 increased by 4% to $274.9 million from $263.3 million in the first quarter 2012.
  • Net Income attributable to iGATE Corporation for first quarter 2013 increased by 44% to $34.8 million from $24.1 million in the first quarter 2012.
  • Gross margin was 38.1 % for the first quarter 2013 compared to 40.2 % in the corresponding quarter in 2012.
  • Diluted earnings per share of $0.34 GAAP; $0.51 non-GAAP as compared to $0.22 and $0.38 for the same period in 2012.
  • Added ten new customers during the quarter; six of which are Fortune 1000 companies.
  • The company ended the first quarter 2013 with 28,204 employees
  • iGATE launched its inaugural iGATE CEO Golf Cup on January 12-13, 2013 in association with Forbes and the NYSE

Phaneesh Murthy, CEO, iGATE said, "I am pleased to see a steady start to the year. We have made significant investments in sales, marketing and branding in our markets. The pace at which we are adding quality new clients is satisfying."

Sujit Sircar, CFO, iGATE said, "I am happy to see good earnings growth during the quarter. Our margins were a bit lower as a result of the visa related costs that we partially absorbed in the quarter."

First Quarter Operating Results

Results for the first quarter on a GAAP and non-GAAP basis are provided in the table below.

 
  Three months ended Three months ended Year over year increase/ (decrease)
  3/31/2013 3/31/2012  
Net revenue ($Millions)   274.9  263.3 4%
Operating margin ($Millions)    52.6  48.1 9%
GAAP net income ($Millions)   34.8  24.1 44%
GAAP diluted EPS ($)  0.34  0.22 55%
Adjusted EBITDA ($Millions)  65.5  68.3 -4%
Non-GAAP net income ($Millions)   39.9  29.0 38%
Non-GAAP diluted EPS ($)  0.51  0.38 34%

New customers and key project wins in the quarter

  • A leading Insurance carrier in the U.S listed in the Fortune 500 category chose iGATE as a third party administrator (TPA) of its claims operations. As part of this integrated technology and operations (iTOPS) deal, iGATE will be responsible for the customer's entire claims operations, IT applications and infrastructure and provide TPA services on its platform, where the client will pay on a per-policy-per-month model.  
  • iGATE has also been engaged by a global financial services provider in Europe to assist it in reducing its operating costs. As part of the engagement, iGATE will focus on simplifying this company's IT environment by consolidating multiple platforms at a global level and implementing newer technologies designed to reduce IT investments by the client and increase operational efficiency.  
  • A renowned luxury apparel and footwear company in North America that designs and sells upscale footwear and accessories internationally engaged iGATE to optimize the company's worldwide IT landscape. As part of the engagement, iGATE will provide integrated IT and business aligned services using proprietary platforms and cloud based solutions designed to make the IT environment scalable and IT costs variable.  
  • iGATE has also been selected by a leading food wholesaler in Europe to assist the company in achieving operational efficiency after a recent acquisition of a retailer. As part of this engagement, iGATE will focus on enterprise systems consolidation that includes separation and migration of several disparate systems into a unified system.  
  • A Fortune 500 company in the U.S. providing engineering and construction services for commercial and government clients globally, engaged iGATE to improve the company's operational efficiency and increase profitability by consolidation of IT applications. As part of the engagement, iGATE will integrate IT services and facilitate upgrading of IT platforms on a global delivery model.

Conference Call and Webcast

The Company has scheduled its Earnings Conference Call on Thursday, April 11, 2013 to discuss the results of its first quarter ended March 31, 2013. 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 
Access Code : 410960

The call will be webcast live on iGATE's website ( www.igate.com) in 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 410960. The telephonic replay will be available until April 18, 2013.

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