iGATE Corporation (“iGATE or the “Company”; NASDAQ:IGTE), the first integrated Technology and Operations company providing Business Outcomes-based solutions, today announced its financial results for the third quarter and nine months ended September 30, 2013.
Third Quarter Financial Highlights
· Revenues increased by 8.2% year-over-year and 3.6% sequentially
o $293.4 million in Q3, 2013 compared to $271.1 million in Q3, 2012 and $283.3 million in Q2, 2013
· Net Income attributable to iGATE Corporation increased by 12.7% year-over-year and 6.3% sequentially
o $31.9 million in Q3, 2013, compared to $28.3 million in Q3, 2012 and $30.0 million in Q2, 2013
· Gross margin was 41.4%, an increase compared to 39.8% in the corresponding quarter of 2012
· GAAP diluted EPS increased by 11.1%
o $0.30 per share in Q3, 2013 compared to $0.27 per share in Q3, 2012
· Non GAAP diluted EPS was $0.46 per share in Q3, 2013
· iGATE added eight new customers during the quarter including two Fortune 1000 companies
· The Company ended the third quarter of 2013 with over 28,200 employees
Ashok Vemuri, President and CEO, said, “I am pleased with our ability to accelerate revenue growth both sequentially and year-over-year. I am also happy with the quality of deals we are winning that are longer-term in nature with focus on innovation and productivity gains to our customers.”
“Our iTOPS model is a clear differentiator in the IT services marketplace. Clients are increasingly looking for partners to deliver solutions that can integrate emerging technologies with business process expertise to drive innovation and value. This is what our iTOPS model does and its increasing acceptance positions the company well among its competitors,” he added.
Sujit Sircar, CFO, said, “Overall it has been a very good quarter for iGATE. Our operational efficiencies coupled with a positive gain out of the Indian Rupee depreciating against the U.S. Dollar resulted in an expansion of our margins and earnings. We also generated $86 million of operating cash during the quarter which is another positive.”
“The forex tailwinds however seem to have settled down with the Rupee gaining marginal stability over the past couple of weeks,” he added.
About Business Outcomes
iGATE’s industry-first Business Outcomes-based approach focuses on the realization of tangible and measurable results, unlike traditional models, which are driven by work, effort, time and manpower. By integrating technology and processes in a proprietary way and pricing services on results, iGATE exchanges fixed costs for a variable cost structure in an attempt to get clients to pay-for-results-only while enabling them to adjust to the peaks and valleys of their demand.
About iGATE
iGATE Corporation is the first integrated technology and operations (iTOPS) company providing full-spectrum consulting, technology and business process outsourcing, and product and engineering solutions on a Business Outcomes-based model. Armed with over three decades of IT Services experience and powered by the iTOPS platform, iGATE’s multi-location global organization has a talent pool of over 28,200 employees and consistently delivers effective solutions to over 300 clients including Fortune 1000 companies spanning verticals such as: banking and financial services; insurance and healthcare; life sciences; manufacturing, retail, distribution and logistics; media, entertainment, leisure and travel; communication, energy and utilities; public sector; and independent software vendors. Please visit www.igate.com for more information.
iGATE Corporation is listed on NASDAQ under the symbol "IGTE."
Third Quarter Financial Highlights
· Revenues increased by 8.2% year-over-year and 3.6% sequentially
o $293.4 million in Q3, 2013 compared to $271.1 million in Q3, 2012 and $283.3 million in Q2, 2013
· Net Income attributable to iGATE Corporation increased by 12.7% year-over-year and 6.3% sequentially
o $31.9 million in Q3, 2013, compared to $28.3 million in Q3, 2012 and $30.0 million in Q2, 2013
· Gross margin was 41.4%, an increase compared to 39.8% in the corresponding quarter of 2012
· GAAP diluted EPS increased by 11.1%
o $0.30 per share in Q3, 2013 compared to $0.27 per share in Q3, 2012
· Non GAAP diluted EPS was $0.46 per share in Q3, 2013
· iGATE added eight new customers during the quarter including two Fortune 1000 companies
· The Company ended the third quarter of 2013 with over 28,200 employees
Ashok Vemuri, President and CEO, said, “I am pleased with our ability to accelerate revenue growth both sequentially and year-over-year. I am also happy with the quality of deals we are winning that are longer-term in nature with focus on innovation and productivity gains to our customers.”
“Our iTOPS model is a clear differentiator in the IT services marketplace. Clients are increasingly looking for partners to deliver solutions that can integrate emerging technologies with business process expertise to drive innovation and value. This is what our iTOPS model does and its increasing acceptance positions the company well among its competitors,” he added.
Sujit Sircar, CFO, said, “Overall it has been a very good quarter for iGATE. Our operational efficiencies coupled with a positive gain out of the Indian Rupee depreciating against the U.S. Dollar resulted in an expansion of our margins and earnings. We also generated $86 million of operating cash during the quarter which is another positive.”
“The forex tailwinds however seem to have settled down with the Rupee gaining marginal stability over the past couple of weeks,” he added.
About Business Outcomes
iGATE’s industry-first Business Outcomes-based approach focuses on the realization of tangible and measurable results, unlike traditional models, which are driven by work, effort, time and manpower. By integrating technology and processes in a proprietary way and pricing services on results, iGATE exchanges fixed costs for a variable cost structure in an attempt to get clients to pay-for-results-only while enabling them to adjust to the peaks and valleys of their demand.
About iGATE
iGATE Corporation is the first integrated technology and operations (iTOPS) company providing full-spectrum consulting, technology and business process outsourcing, and product and engineering solutions on a Business Outcomes-based model. Armed with over three decades of IT Services experience and powered by the iTOPS platform, iGATE’s multi-location global organization has a talent pool of over 28,200 employees and consistently delivers effective solutions to over 300 clients including Fortune 1000 companies spanning verticals such as: banking and financial services; insurance and healthcare; life sciences; manufacturing, retail, distribution and logistics; media, entertainment, leisure and travel; communication, energy and utilities; public sector; and independent software vendors. Please visit www.igate.com for more information.
iGATE Corporation is listed on NASDAQ under the symbol "IGTE."
