iGate Q3 net up marginally; revenue down 55%

Nasdaq-listed software company iGate today posted a minor increase in its net income for quarter ending September 2009 at $8.9 million.The company had posted a net income of $8.5 million in the Q3 of last year.

Revenue from continuing operations, however, declined to $49.1 million during the quarter from $55.4 million made in the corresponding quarter of FY 2008, the company said.

The company added six new customers in the quarter. Its employee base in Q3 fell slightly to 6,380 employees as of September 30, 2009 compared to 6,407 in the same period last year. IGate CEO Phaneesh Murthy told PTI that "the fall in revenue is due to the continuing recession. The slight increase in the net income is a sign of the demand revival. Pressure on the billing rates has eased and we expect a strong revival of the market by the end of the year".

 

Gross profit margin increased to 41.1 per cent from 38.4 per cent in the corresponding quarter of last year.

Operating income for the quarter was $9.1 million, a 22.5 per cent jump over reported in the same period last year. Operating margin increased to 18.6 per cent of revenue from 13.4 per cent in the corresponding quarter last year.