iGate net up 13 percent in third quarter

Leading integrated technology firm iGate Corporation reported $32 million net income for third quarter (July-September) of calendar year 2013, registering an increase of 13 percent year-on-year (YoY) from $28 million in same period last year.

Net income grew sequentially 6.3 percent from $30 million in second quarter.

"Revenue for the quarter under review increased 8.2 percent YoY to $293 million from $271 million same period year ago and 3.6 percent sequentially from $283 million in second quarter (April-June) of this year," the New Jersey-based company said in a statement here Thursday.

Gross margin grew marginally to 41.4 percent from 39.8 percent in same quarter of 2012.

"The results demonstrate our ability to accelerate revenue growth both sequentially and year-over-year.They also reflect the quality of deals we are winning that are longer-term in nature," iGate chief executive Ashok Vemuri said in the statement.

Vemuri joined iGate Sept 12 after quitting Indian IT bellwether Infosys Ltd Aug 28 as head of its Americas business, five months after iGate fired disgraced Phaneesh Murthy May 21 from the top post on sexual abuse charge.

The company added eight new customers during the quarter, including two Fortune 1000 firms.

The company had 28,200 employees at the end of third quarter.

"Our iTOPS model is a clear differentiator in the IT services marketplace.Clients are looking for partners to deliver solutions that can integrate emerging technologies with business process expertise to drive innovation and value," Vemuri noted.

Commenting on the performance in Q3, chief financial officer Sujit Sircar said the quarter was very good, as the company gained from the Indian rupee depreciating sharply against the dollar in terms of margins and earnings.

"We also generated $86 million of operating cash during the quarter, which is another positive," Sircar added.