iGate Q2 profit beats Street on strong new customer adds

Software company iGate posted a second-quarter adjusted profit ahead of market estimates, helped by strong new customer additions.

"We are seeing customers respond positively to our joint value proposition and are starting to sense some larger opportunities," the company, which recently closed its USD 1.2 billion acquisition of Patni Computer Systems, said. IGate, which competes with the likes of Infosys Technologies, Cognizant Technologies Services Corp and Genpact Ltd, added 21 new customers during the quarter. Second quarter net income was USD 4 million, compared with USD 11.2 million, a year ago. Sales more than doubled to USD 170.4 million, even as gross margin fell to 34.7% from 38.1% last year, owing to the addition of the Patni business. Excluding items, iGate earned 16 cents a share, falling beating of analysts' estimates of 13 cents a share, according to Thomson Reuters I/B/E/S. IGate shares closed at USD 14 on Thursday on Nasdaq.