Virtusa's revenue grows 26% to $42.5 million
Virtusa's revenue increased 26% year-over-year and 5.5% sequentially,
to $42.5 million in the third quarter of fiscal 2008.
Virtusa reported third quarter income from operations of $5.9
million, or 13.8% of revenue, an increase of 44% compared to $4.1
million for the third quarter of fiscal 2007.
Net income for the third quarter of fiscal 2008 was $5.3 million or
$0.21 per diluted share, compared to $8.7 million or $0.47 per diluted
share, for the third quarter of fiscal 2007. The year-over-year decrease
in net income of $3.4 million is primarily due to a one-time income tax
benefit of $5 million in the prior year quarter caused by the reversal
of the Company's deferred tax valuation allowance.
Earnings per share for the third quarter of fiscal 2008 reflects the
lack of the one-time income tax benefit and a 34% year-over-year
increase in diluted shares outstanding primarily due to the successful
completion of the Company's initial public offering.
Virtusa's Chairman and CEO, Kris Canekeratne, said, "We are pleased
with our financial results in the third quarter. We saw ongoing strength
within our largest clients as well as ramp up of newer clients which we
believe will help fuel the long term growth of the Company. Our ability
to increase IT productivity and improve time-to-market through our
differentiated platforming approach is resonating well within the
marketplace", he said.
The Company ended the third quarter of fiscal 2008 with $107.6
million of cash and cash equivalents, short-term investments and
long-term investments, which is an increase of $7.4 million from the
prior quarter, due primarily to higher net income and improved
collection of receivables.