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IGATE Reports Strong Second Quarter Results; Profits Up 136%

Stocks in this article: IGTE

FREMONT, California, July 17, 2013 /PRNewswire/ --

iGATE Corporation (NASDAQ:IGTE), the first integrated Technology and Operations Company providing Business Outcomes- based solutions, today announced its financial results for the second quarter and six months ended June 30, 2013.

     (Logo:  http://photos.prnewswire.com/prnh/20130717/629294 )

Second Quarter Highlights

  • Revenues increased by 6% year-over-year and 3% sequentially
    • $283.3 million in Q2, 2013 compared to $ 268.0 million in Q2, 2012 and $274.9 million in Q1, 2013
  • Net Income attributable to iGATE Corporation increased by 136%
    • $ 30.0 million in Q2, 2013, which includes $3 million attributable to the forfeiture of vested stock options  compared to $12.7 million in Q2, 2012
  • Gross margin was 37.9%, an increase compared to 37.4 % in the corresponding quarter of 2012
  • GAAP diluted EPS  increased by 300%
    • $ 0.28 per share  in Q2, 2013 compared to $ 0.07 per share in Q2, 2012
  • Non GAAP diluted EPS  increased by 57%
    • $ 0.44 per share  in Q2, 2013 compared to $ 0.28 per share in Q2, 2012
  • iGATE added 11 new customers during the quarter including two Fortune 1000 companies
  • The company ended the second quarter of 2013 with over 28,300 employees

Gerhard Watzinger, CEO, iGATE, said, "I am pleased with our performance in the second quarter with revenue growing 3% sequentially. We booked orders worth over $600 million including three significant multi-year contracts each valued at $100 million or greater. I am happy to see that the Business Outcomes proposition is resonating well with our customers and markets."

"We are seeing more positive signs related to offshore IT services spending and stability in the overall business environment, with clients spending to their budgets," he  added.

Sujit Sircar, CFO, iGATE, said, "I am happy with the margin growth seen in the quarter as we absorbed our annual wage hikes which were offset largely by operational efficiencies and to an extent the depreciation of the Indian Rupee. Our profits increased and the cash flow position looks good. The diluted earnings per share increased by 57% on a non GAAP basis, which is another positive."

On the currency fluctuation, Sircar said, "The tailwinds provided by the rupee fluctuation against the U.S. dollar appear to be short-lived with the operating costs going up in the medium to long term."

Second Quarter Operating Results

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