Intelligroup reports Q4 financial results

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Intelligroup Inc., a consulting, business optimization, and outsourcing firm serving global corporations, today reported financial results for its fourth quarter and year-ended December 31, 2006. Such results are included at the end of this release and in the periodic report on Form 10-K for the period ended December 31, 2006, as filed with the United States Securities and Exchange Commission.

 

Fourth Quarter Highlights

 

Revenue: Fourth quarter revenue remained relatively flat compared to revenue in the third quarter of 2006, but it increased by 9% over the fourth quarter of 2005.

 

Utilization rates:  Utilization rates increased from 64% for the fourth quarter of 2005 to 68% for the fourth quarter of 2006 although sequentially utilization rates dipped from 72% in the third quarter of 2006.

 

Operating Performance:  Operating performance improved by $3.6 million in fiscal year  2006 compared to fiscal year 2005

 

New Customers: 26 new customers were added globally in the fourth quarter.

 

Fourth Quarter performance:

 

The Company reported revenues in the fourth quarter of 2006 of $32.0 million, which marks a slight decrease of 1.5% from $32.5 million in the third quarter of 2006 and a 9% increase from $29.4 million in the fourth quarter of 2005. The Company's average bill rates were relatively flat in the fourth quarter of 2006 as compared with the third quarter of 2006 and the fourth quarter of 2005. The Company reported gross margin of 23.3% for the fourth quarter of 2006, which marks a decrease from 28.6% for the third quarter of 2006 and 29.4% for the fourth quarter of 2005. The Company reported an operating loss of $2.6 million in the fourth quarter of 2006, which marks a decrease of $3.2 million from the operating income of $545,000 in third quarter of 2006. Of this decrease approximately $1.0 million is attributable to increased payroll cost due to the increase in hiring of technical personnel and approximately $1.3 million is attributable to a reserve provided against accounts receivable and unbilled revenue for one customer contract. The operating loss increased by $923,000 in fourth quarter of 2006 compared to an operating loss of $1.7 million in the fourth quarter of 2005.

 

Full year performance:

 

The Company reported revenue of $125.3 million for the fiscal year 2006 which is flat as compared with revenue of $125.3 million for fiscal year 2005. The Company reported gross margin of 27.3% for fiscal year 2006 which represents a slight increase from gross margin of 26.3% in fiscal year 2005. The Company's operating performance improved by $3.6 million from an operating loss of $6.9 million in fiscal year 2005 to an operating loss of $3.3 million in fiscal year 2006. 

 

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