iGate Solutions registers $54.9 mn revenue

 Revenues for the quarter increased to $54.9 million compared to $47.9 million in the same period last year and $52.8 million in the previous quarter, iGATE Corporation CEO Phaneesh Murthy said, announcing its first quarter financial results under US GAAP for the three months ended March 31, 2008.

 Consolidated revenue from continuing operations stood at $79.8 million , an increase of 7 per cent from the same period last year and an increase of 1 per cent from the last quarter.

 Seven new customers were added during the quarter in iGATE Solutions segment. "iGATE Solutions business reported another good growth quarter. We added seven new customers this quarter, including major wins that can help grow our iTOPS revenue. We believe these wins will have both revenue and improved margin impact for our business going forward," Murthy said.

 The improvement in margin is due to increase in contribution from higher margin customers, improved average realisations and reduction in attrition rates, he said.

 Net employees added during the quarter is 307 taking the total to 6,566 as of March 31, 2008 in iGATE Solutions segment,taking the company total to 7,317, he said.

 iGATE also announced its plan to divest its Professional Services business. At present, it looks more likely that this divesture will take the form of a spin-off rather than a sale.

 Overall net income of iGATE Corporation increased 71 per cent year-on-year to $7.4 million compared with net income of $4.3 million in the same period last year and $4.9 million in the previous quarter. IGATE's key customer wins included a multi-million dollar iTOPS deal with a government agency in Australia to provide bonds processing and administrative management.