Virtusa Announces First Quarter Fiscal 2011 Financial Results

3-Aug-2010

Virtusa Corporation (NASDAQ: VRTU), a global information technology (IT) services company that provides IT consulting, technology implementation and application outsourcing services through an enhanced global delivery model, today reported financial results for the first quarter fiscal year 2011, ended June 30, 2010, inclusive of the acquisitions of both InSource, LLC and ConVista Consulting, LLC that closed on November 4, 2009 and February 1, 2010, respectively.

First Quarter Fiscal 2011 Financial Results

Revenue for the first quarter of fiscal 2011 was $51.4 million, an increase of 38% year-over-year and 8% sequentially.  On a constant currency basis (1), first quarter revenue increased 39% year-over-year and 8% sequentially. 

Virtusa reported income from operations of $3.1 million for the first quarter of both fiscal 2011 and 2010, and $3.2 million for the fourth quarter of fiscal 2010. 

Net income for the first quarter of fiscal 2011 was $3.1 million, or $0.13 per diluted share, compared to $2.6 million, or $0.11 per diluted share, for the first quarter of fiscal 2010, and $3.6 million, or $0.15 per diluted share, for the fourth quarter of fiscal 2010.

The Company ended the first quarter of fiscal 2011 with $89.9 million of cash, cash equivalents, short-term investments and long-term investments (2). 

Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “We are pleased with our performance in the first quarter, which showed increased demand for our solutions and service offerings.”  Mr. Canekeratne continued, “Clients continue to spend on IT rationalization initiatives to improve efficiencies and time to market. Today, these savings are being reinvested to fund growth initiatives, and our solutions-led, consultative platforming approach enables us to capture opportunities across a broad range of programs.”

Ranjan Kalia, Chief Financial Officer, said, “The momentum we gained exiting fiscal year 2010 continued into our first quarter fiscal 2011 as evidenced by our strong revenue growth.” Mr. Kalia added, “As we enter the second quarter of fiscal year 2011, we have increased confidence in our business and are raising our revenue guidance for the full fiscal year 2011.”