The decline was attributed to foreign exchange losses and declining demand
Indian outsourcing services provider Patni Computer Systems has reported a 36% decline in net income to $16.1m for the fourth quarter 2008, compared to $25.3m in the year-ago quarter, on revenue up 1% at $176.4m. The decline was attributed to foreign exchange losses and declining demand.
Operating income fell 45% to $14.8m, while diluted EPS fell 30% to $0.12. The company said application development and maintenance accounted for 64% of total revenue, while package software implementation accounted for 14%. Product engineering services represented 11%, while infrastructure management services accounted for 5%, and business process outsourcing 6%.
Geographically, the Americas contributed 77% of total revenue, EMEA contributed 14%, and Asia Pacific contributed 6%.
For fiscal 2008, the company reported an 11% decline in net income to $101.4m compared to net income of $114m a year ago, on revenue up 8% at $718.9m.
Surjeet Singh, CFO at Patni Computer Systems, said: The continuous currency benefit due to sharp depreciation of the rupee was seen at operating level as the dollar appreciated against all major currencies on safety flight. We are working toward realigning our cost structures to sustain the current pressure on margins as demand remains unpredictable.
For the first quarter 2009, the company expects revenue between $154m and $155m and net income between $13.5m and $14.5m.