Net income more than doubled to $11.6m
Information technology and outsourcing services provider iGATE has reported revenues of $57.9m for the first quarter of 2010, an increase of 29% compared to $44.8m for the same period last year.
Operating income for the quarter grew to $11m from $5.6m in the same period last year. Operating margin was 19.0%, up from 12.5% in the corresponding quarter last year. For the quarter ended March 31, 2010, the company achieved a gross margin of 40.1% and net margin of 20.1%.
The company posted a net income of $11.6m, or $0.20 per diluted share, compared to net income of $5m or $0.09 per diluted share in the same period last year. The company’s cash and cash equivalents and short-term investments went up from $96.8m to $100.3m after the payment of a $ 6.1m dividend, during the quarter.
iGATE won a multi-year development agreement for enhancing and modernising legacy banking applications for one of North America’s largest banks. The company and its Japanese partner CAC were selected by one of Japan’s largest financial services firms to assist in a strategic project that involves upgrading of the firm’s commercial banking system.
Phaneesh Murthy, chief executive officer of iGATE, said: Our growth in revenue and exponential jump in EPS reflects a good performance coming on the back of a recovery in our key segments. We have strengthened our leadership team with several strategic hires to drive revenue growth and build solutions for the future.
Sujit Sircar, chief financial officer of iGATE, said: While we had an excellent performance in Q1 and expect revenues to grow, margins are likely to be under pressure due to increased hiring, rupee appreciation and wage inflation. Our cash and cash equivalents and short-term investments crossed the $100m mark.