iGate Q3 net profit up at USD 14.3 mn

Declaring its financial results for the three and nine months ended September 30, 2011, the Nasdaq listed iGATE Corporation said that it has seen a spurt in EBITDA and EPS with increased revenues, while the attrition percentage has further decreased to less than 20% with the combined entity showing clear signs of the integration efforts being effective.

Revenues for third quarter 2011(quarter ended September 30, 2011) were up 255.20% at USD 265.7 million compared with USD 74.8 million in the third quarter 2010 (quarter ended September 30, 2010). Sequentially, revenues for third quarter 2011 were up 56% compared with USD 170.4 million in the second quarter 2011(quarter ended June 30, 2011).

Net Income for third quarter 2011 was USD 14.3 million compared with USD 14.3 million in the third quarter 2010. Sequentially, Net Income for third quarter 2011 more than trebled from USD 4 registered in the second quarter 2011. Interest expense impacted net income by USD 19.5 million.

24 New customers were added during the third quarter, including six Fortune 1000 companies. Headcount was at 26,216 employees as of September 30, 2011.

Gross margin was 36.9 % for the third quarter 2011 compared with 39.4% in the third quarter 2010 and compared with 34.7% in the second quarter 2011.

Diluted earnings per share for the third quarter 2011 were USD 0.10 GAAP; USD 0.26 non-GAAP compared with USD 0.25 GAAP in third quarter 2010; USD 0.28 non-GAAP in third quarter 2010 and compared with (USD 0.02) GAAP in second quarter 2011; USD 0.16 non-GAAP in second quarter 2011.

Adjusted EBITDA was USD 55.8 million for the third quarter 2011 compared with USD 19.2 million in the third quarter 2010 and compared with USD 28.6 million in the second quarter 2011.

Highlights of nine months ended September 30, 2011

Revenues for the nine months ended September 30, 2011 were $511.9 million compared with $199.6 million in the corresponding period in 2010. Net Income for the nine months ended September 30, 2011 was USD 36.2 million compared with USD 37 million in the corresponding period in 2010. Interest expense impacted net income by USD 32.8 million.

Gross margin was 36.8% for the nine months ended September 30, 2011 compared with 39.2% in the corresponding period in 2010.

Diluted earnings per share were USD 0.28 GAAP; USD 0.63 non-GAAP compared with USD 0.65 GAAP; USD 0.73 non GAAP in the corresponding period 2010.

Adjusted EBITDA was USD 105.4 million for the nine months ended September 30, 2011 compared with USD 49.1 million in the corresponding period in 2010.