IT Outsourcing firm iGate reported a 9% decline in net profit to $31.6 million for the first quarter ended March 31, 2014 as against a net profit of $34.8 million in the corresponding quarter last fiscal.
First Quarter Highlights
Revenues were $302.2million
Increased 10% compared to $274.9 million in the first quarter of 2013
Increased 1% sequentially compared to $299.3 million in the fourth quarter of 2013
Net Income attributable to iGATE Corporation was $31.6 million
Compared to $34.8 million in the first quarter of 2013
Compared to $33.1 million in the fourth quarter of 2013
Gross margin was 37.5 %
Compared to 38.1% in the first quarter of 2013
Compared to 39.8% in the fourth quarter of 2013
Diluted earnings per share were $0.29 GAAP and $0.45 non-GAAP
Compared to $0.34 GAAP and $0.51 non-GAAP in the first quarter of 2013
Compared to $0.30 GAAP and $0.49 non-GAAP in the fourth quarter of 2013
Adjusted EBITDA was $75.2 million
Compared to $65.5 million in the first quarter of 2013
Compared to $74.7million in the fourth quarter of 2013
The Company added nine new customers during the first quarter
As of March 31, 2014, the Company had 30,835 employees with a net addition of 1,102
Ashok Vemuri, President and Chief Executive Officer, iGATE said, “We had an encouraging start to the year with a 10% y-o-y growth in revenues. Overall market conditions appear to be favorable across the board. With our healthy pipeline, along with the timely rollout of investments in people and solutions, we believe we are well positioned for sustainable growth.”
Sujit Sircar, Chief Financial Officer, iGATE said, “We successfully secured financing to redeem our $770 million 9% Senior Notes through a combination $325 million of new 4.75% senior notes due in 2019 and bank financing. This refinancing is expected to yield significant cost savings over the coming quarters. I am also pleased with the Company’s cash-flow position during the quarter. However, the rupee fluctuation due to forex headwinds will be a concern, as we continue to grow our profits.”
Key contracts won during the First Quarter
A leading mining company based in Europe with its operations poised to grow organically selected iGATE as a strategic IT Services partner in a multi-year, multi-million dollar engagement. As part of the contract, iGATE will provide enterprise application management services for the client’s ERP system, and implement optimization processes and content management applications for its users. iGATE will also provide an end-to-end fuel management system to enable the client to improve on the fuel consumption efficiency levels leading to significant costs savings.
A leading apparel retailing company in North America selected iGATE as its IT partner to drive efficiency in its distribution models. As part of the strategy, the client will transition to an omni-channel retail environment, with the new order management systems supported by iGATE. This will lower the operating costs and consolidate operations thus facilitating process efficiency. iGATE will also support integration and testing of the client’s new product life management system.
A large global financial institution based in North America selected iGATE as a strategic IT partner to provide testing and validation services for their core-banking program. As part of the multi-million dollar contract, iGATE will leverage the bank’s existing program in a ‘box validation framework’. iGATE’s rich experience in working with the banking industry and its repository of prebuilt process models along with best practices and test scenarios made it a natural choice as a trusted partner for the engagement.
A large independent brokerage company based in North America selected iGATE as its IT partner to provide quality assurance services for its new customer facing services. This multi-million dollar deal leverages iGATE's solution assurance service model that enables customers to make more frequent and faster quality releases. iGATE will provide ongoing release and configuration management solutions that will facilitate the client to service its customers faster and better with its newer functionalities and capabilities.
iGATE has been engaged by a global restaurant chain based in North America to assist it in the architecture and design of its next generation digital platform. This platform plays a significant role in the client’s strategy to design a customized customer experience, thus facilitating greater product choice, better value and product information that appeal to a broader spectrum of customers.
Key Highlights and Recognitions during the First Quarter
Ashok Vemuri was elected to the Board of IT Governors at The World Economic Forum, Davos. As part of the Board, Ashok will contribute to the fulfillment of the Forum’s IT agenda.
iGATE bagged the coveted “Fun @ Work” award for 2013 at the World HRD Congress. The award recognizes iGATE for its innovative efforts in employee engagement making it an employee-friendly company.
iGATE won the VCCircle Awards under the category- Best PE/VC backed IT Company of the Year 2013. This was the third edition of VCCircle Awards, India's only platform that recognizes the best performing private equity or venture capital-backed companies and transaction advisors.
The second edition of the iGATE CEO Golf Tournament was conducted at Pinehurst Resort & Country Club, North Carolina. Conducted in association with Forbes and co-hosted by golfing icon Gary Player, the event witnessed CEOs of Global 2000 companies golfing for a noble cause. The winners donated $120,000 to their favorite charities.
iGATE was ranked as a high performer in the enterprise mobility space by HfS Research – a leading independent analyst authority and community for the global business services and outsourcing industry. iGATE has been rated high for its capabilities in execution and innovation in the new age mobile technologies and platforms.
First Quarter Highlights
Revenues were $302.2million
Increased 10% compared to $274.9 million in the first quarter of 2013
Increased 1% sequentially compared to $299.3 million in the fourth quarter of 2013
Net Income attributable to iGATE Corporation was $31.6 million
Compared to $34.8 million in the first quarter of 2013
Compared to $33.1 million in the fourth quarter of 2013
Gross margin was 37.5 %
Compared to 38.1% in the first quarter of 2013
Compared to 39.8% in the fourth quarter of 2013
Diluted earnings per share were $0.29 GAAP and $0.45 non-GAAP
Compared to $0.34 GAAP and $0.51 non-GAAP in the first quarter of 2013
Compared to $0.30 GAAP and $0.49 non-GAAP in the fourth quarter of 2013
Adjusted EBITDA was $75.2 million
Compared to $65.5 million in the first quarter of 2013
Compared to $74.7million in the fourth quarter of 2013
The Company added nine new customers during the first quarter
As of March 31, 2014, the Company had 30,835 employees with a net addition of 1,102
Ashok Vemuri, President and Chief Executive Officer, iGATE said, “We had an encouraging start to the year with a 10% y-o-y growth in revenues. Overall market conditions appear to be favorable across the board. With our healthy pipeline, along with the timely rollout of investments in people and solutions, we believe we are well positioned for sustainable growth.”
Sujit Sircar, Chief Financial Officer, iGATE said, “We successfully secured financing to redeem our $770 million 9% Senior Notes through a combination $325 million of new 4.75% senior notes due in 2019 and bank financing. This refinancing is expected to yield significant cost savings over the coming quarters. I am also pleased with the Company’s cash-flow position during the quarter. However, the rupee fluctuation due to forex headwinds will be a concern, as we continue to grow our profits.”
Key contracts won during the First Quarter
A leading mining company based in Europe with its operations poised to grow organically selected iGATE as a strategic IT Services partner in a multi-year, multi-million dollar engagement. As part of the contract, iGATE will provide enterprise application management services for the client’s ERP system, and implement optimization processes and content management applications for its users. iGATE will also provide an end-to-end fuel management system to enable the client to improve on the fuel consumption efficiency levels leading to significant costs savings.
A leading apparel retailing company in North America selected iGATE as its IT partner to drive efficiency in its distribution models. As part of the strategy, the client will transition to an omni-channel retail environment, with the new order management systems supported by iGATE. This will lower the operating costs and consolidate operations thus facilitating process efficiency. iGATE will also support integration and testing of the client’s new product life management system.
A large global financial institution based in North America selected iGATE as a strategic IT partner to provide testing and validation services for their core-banking program. As part of the multi-million dollar contract, iGATE will leverage the bank’s existing program in a ‘box validation framework’. iGATE’s rich experience in working with the banking industry and its repository of prebuilt process models along with best practices and test scenarios made it a natural choice as a trusted partner for the engagement.
A large independent brokerage company based in North America selected iGATE as its IT partner to provide quality assurance services for its new customer facing services. This multi-million dollar deal leverages iGATE's solution assurance service model that enables customers to make more frequent and faster quality releases. iGATE will provide ongoing release and configuration management solutions that will facilitate the client to service its customers faster and better with its newer functionalities and capabilities.
iGATE has been engaged by a global restaurant chain based in North America to assist it in the architecture and design of its next generation digital platform. This platform plays a significant role in the client’s strategy to design a customized customer experience, thus facilitating greater product choice, better value and product information that appeal to a broader spectrum of customers.
Key Highlights and Recognitions during the First Quarter
Ashok Vemuri was elected to the Board of IT Governors at The World Economic Forum, Davos. As part of the Board, Ashok will contribute to the fulfillment of the Forum’s IT agenda.
iGATE bagged the coveted “Fun @ Work” award for 2013 at the World HRD Congress. The award recognizes iGATE for its innovative efforts in employee engagement making it an employee-friendly company.
iGATE won the VCCircle Awards under the category- Best PE/VC backed IT Company of the Year 2013. This was the third edition of VCCircle Awards, India's only platform that recognizes the best performing private equity or venture capital-backed companies and transaction advisors.
The second edition of the iGATE CEO Golf Tournament was conducted at Pinehurst Resort & Country Club, North Carolina. Conducted in association with Forbes and co-hosted by golfing icon Gary Player, the event witnessed CEOs of Global 2000 companies golfing for a noble cause. The winners donated $120,000 to their favorite charities.
iGATE was ranked as a high performer in the enterprise mobility space by HfS Research – a leading independent analyst authority and community for the global business services and outsourcing industry. iGATE has been rated high for its capabilities in execution and innovation in the new age mobile technologies and platforms.
