iGATE Corporation, an integrated technology and operations firm, on Friday said iGATE Solutions business reported a revenue of $54.9 million from operations, an increase of four per cent sequentially and 15 per cent y-o-y for the first quarter 2008.
Revenues for the quarter increased to $54.9 million compared to $47.9 million in the same period last year and $52.8 million in the previous quarter, Phaneesh Murthy, Chief Executive Officer of iGATE Corporation, said announcing its first quarter financial results under US GAAP for the three months ended March 31, 2008, in a statement on Friday
Consolidated revenue from continuing operations stood at $79.8 million, an increase of seven per cent from the same period last year, an increase of one per cent from the last quarter.
Seven new customers were added during the quarter in iGATE Solutions segement. "iGATE Solutions business reported another good growth quarter. Many of our existing customers are scaling business with us.On another positive note, we added seven new customers this quarter, including major wins that can help grow our iTOPS revenue. We believe these wins will have both revenue and improved margin impact for our business going forward", Murthy said.
Gross profit margin increased to 37 per cent from 32 per cent in the corresponding quarter last year and from three per cent in the previous quarter. The improvement in margin is due to increase in contribution from higher margin customers, improved average realisations and reduction in attrition rates, he said.
"Our gross margins increased due to increase in higher margin revenues, improved bill rates and reduction in attrition rates. We have delivered strong margin growth this quarter and will continue to focus on earnings growth through improving revenue quality and operational efficiencies", said Ramachandran Natesan, Chief Financial Officer of iGATE Corporation.
Net employees added during the quarter is 307 taking the total to 6,566 as of March 31, 2008 in iGATE Solutions segment and taking the company total to 7,317, he said.
IGATE also announced its plan to divest its Professional Services business. Presently,it looks more likely that this divesture will take the form of a spin-off rather than a sale.
Overall net income of iGATE Corporation increased 71 per cent y-oy to $7.4 million compared with net income of USD 4.3 million in the same period last year and $4.9 million in the previous quarter.
IGATE's key customer wins included a multi-million dollar iTOPS deal with a government agency in Australia to provide bonds processing and administrative service.