Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multimedia
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

iGATE Reports Strong Second Quarter Results; Profits Up 136%


News provided by

iGATE Corporation

17 Jul, 2013, 11:18 GMT

Share this article

Share toX

Share this article

Share toX

This image opens in the lightbox

FREMONT, California, July 17, 2013 /PRNewswire/ --

Signed Three Large Multi-Year Deals Each Valued at $100 Million or Greater

iGATE Corporation (NASDAQ:IGTE), the first integrated Technology and Operations Company providing Business Outcomes- based solutions, today announced its financial results for the second quarter and six months ended June 30, 2013.

     (Logo: http://photos.prnewswire.com/prnh/20130717/629294 )

Second Quarter Highlights

  • Revenues increased by 6% year-over-year and 3% sequentially
    • $283.3 million in Q2, 2013 compared to $ 268.0 million in Q2, 2012 and $274.9 million in Q1, 2013
  • Net Income attributable to iGATE Corporation increased by 136%
    • $ 30.0 million in Q2, 2013, which includes $3 million attributable to the forfeiture of vested stock options  compared to $12.7 million in Q2, 2012
  • Gross margin was 37.9%, an increase compared to 37.4 % in the corresponding quarter of 2012
  • GAAP diluted EPS increased by 300%
    • $ 0.28 per share  in Q2, 2013 compared to $ 0.07 per share in Q2, 2012
  • Non GAAP diluted EPS increased by 57%
    • $ 0.44 per share  in Q2, 2013 compared to $ 0.28 per share in Q2, 2012
  • iGATE added 11 new customers during the quarter including two Fortune 1000 companies
  • The company ended the second quarter of 2013 with over 28,300 employees

Gerhard Watzinger, CEO, iGATE, said, "I am pleased with our performance in the second quarter with revenue growing 3% sequentially. We booked orders worth over $600 million including three significant multi-year contracts each valued at $100 million or greater. I am happy to see that the Business Outcomes proposition is resonating well with our customers and markets."

"We are seeing more positive signs related to offshore IT services spending and stability in the overall business environment, with clients spending to their budgets,"he added.

Sujit Sircar, CFO, iGATE, said, "I am happy with the margin growth seen in the quarter as we absorbed our annual wage hikes which were offset largely by operational efficiencies and to an extent the depreciation of the Indian Rupee. Our profits increased and the cash flow position looks good. The diluted earnings per share increased by 57% on a non GAAP basis, which is another positive."

On the currency fluctuation, Sircar said, "The tailwinds provided by the rupee fluctuation against the U.S. dollar appear to be short-lived with the operating costs going up in the medium to long term."

Second Quarter Operating Results

Results for the three and six months ended June 30, 2013 and 2012, respectively on a GAAP and non-GAAP basis are provided in the table below.

                                                                Six     Six
                                                             months  months
                                                              ended   ended
                                    Q2 FY'13 Q2 FY'12   Y/Y   FY'13   FY'12   Y/Y

    Net revenue ($Millions)            283.3    268.0    6%   558.2   531.3    5%
    Operating margin($Millions)         49.6     48.0    3%   102.2    96.1    6%
    GAAP net income ($Millions)         30.0     12.7  136%    64.7    36.7   76%
    GAAP diluted EPS ($)                0.28     0.07  300%    0.62    0.29  114%
    Adjusted EBITDA ($Millions)         66.2     63.2    5%   131.8   131.5    0%
    Non-GAAP net income ($Millions)     34.5     21.5   60%    74.4    50.5   47%
    Non-GAAP diluted EPS ($)            0.44     0.28   57%    0.95    0.66   44%

New customer and project wins in the quarter

  • iGATE secured a multi-year iTOPS-based contract worth approximately $200 million from a leading financial services company in EMEA to increase operational and technological efficiencies across the client's financial instrument data management systems. As part of this managed services contract, iGATE will consolidate fragmented Business Processes across multiple technology systems to provide a Financial Instrument Data managed service, which will lower risk and complexity for the client and provide significant cost savings.
  • iGATE won a multi-year contract with a leading telecom provider in Europe worth approximately $100 million to transform the company's IT infrastructure and rationalize its vendor landscape in the region. As part of the engagement, iGATE will take responsibility for transforming and managing all enterprise systems, including ERP, Business Intelligence, Infrastructure and Data Network & Telephony services. iGATE will also provide 'Infrastructure as a Service' for the client and specific partners - as well as a multilingual service desk to monitor and report all vendor performance metrics.
  • iGATE announced a $100 million multi-year managed services contract, as an extension to a current agreement for providing global infrastructure services to a leading global provider of insurance, annuities and employee benefit programs. As part of the engagement, iGATE will assist the company in building an innovative Infrastructure model to manage its IT systems towards greater efficiency and flexibility, in order to drive lower costs and increase business agility. The bid was awarded to iGATE on its quality and creativity of the solution, as well as innovative commercial structuring based on the industry leading ITIL based Infrastructure support model.
  • iGATE signed a contract worth over $20 million to establish and manage the next generation of IT service operations for a North America-based premier designer and provider of luxury shoes, bags, and fine leather accessories. As part of this multi-year engagement, iGATE will leverage its world-class managed on-demand services capabilities to migrate, host, configure and manage the client's IT infrastructure. iGATE will deploy its "iNSIGHT" monitoring platform service to manage the client's infrastructure and application footprint across multiple sites and retail locations worldwide focusing on efficiency and enhanced end-user experience.
  • iGATE won contracts worth over $10 million with a leading Fortune 500 conglomerate in North America to provide Business Intelligence-based solutions and Enterprise systems rollout across different businesses and countries that the client operates in. The multi-year contract will involve enterprise systems implementations in Brazil, France, the U.S., Canada, Mexico, India and China.
  • iGATE was selected by a leading Fortune 500-listed tobacco corporation in North America to provide end-to-end technology services integrated with their business processes. In a multi-million, multi-year contract, iGATE will identify business processes that are directly linked to the client's business demands and translate them into well understood software features. iGATE will then develop and deploy iTOPS based-platforms with such features in the client's business environment.  
  • iGATE was awarded a multi-year, multi-million technology services contract by a leading provider of mission critical communication solutions and services for enterprise and the Government sector in North America. As part of the engagement, iGATE will be responsible for a global implementation of the client's Enterprise Systems and integrating it with the business processes using an Agile-based approach.

Awards and Recognitions

  • Sujit Sircar, CFO, iGATE, won the esteemed IMA India's 'The Ninth India CFO Award for the year 2013' in the 'Excellence in Mergers & Acquisitions' category. The India CFO Awards, instituted by IMA India, recognize excellence in the finance function. These awards have become the gold standard for excellence in various dimensions of the function and remain the most coveted in the growing legion of awards.
  • iGATE's Solution for Reference Data Management - RADAR, won the award for 'Excellence in Data Management' at FSOkx's 7th Annual Financial Services Outsourcing Forum, USA. iGATE RADAR is a diagnostic data management solution that can serve all domains especially within the banking and financial services group, including retail banking, insurance, capital markets, investment banking, asset management, wealth management and private banking.
  • iCARE, the corporate social responsibility arm of iGATE has crossed the 100,000 beneficiary mark for one of its projects called Project Akshara. This initiative aims at providing writing books to underprivileged school-going children in India.

Conference Call and Webcast

iGATE will host a telephone conference call on Wednesday, July 17, 2013 at 8:00 am Eastern time to discuss the results of its second quarter and six months ended June 30, 2013. The live discussion may be accessed by dialing 877-407-8037 (toll free) or 201-689-8037 (toll). The on-demand version of the webcast will be available on the iGATE website.

Investors, potential investors, shareholders and bond holders can access the telephonic replay by dialing 877-660-6853 (toll free) or 201-612-7415 (toll) and entering conference number 417632. The telephonic replay will be available until July 24, 2013.

About Business Outcomes

iGATE's industry-first Business Outcomes-based approach focuses on the realization of tangible and measurable results, unlike traditional models which are driven by work, effort, time and manpower. By integrating technology and processes in a proprietary way and pricing services on results, iGATE exchanges fixed costs for a variable cost structure in an attempt to get clients to pay-for-results-only while enabling them to adjust to the peaks and valleys of their demand.

About iGATE

iGATE Corporation is the first integrated technology and operations (iTOPS) company providing full-spectrum consulting, technology and business process outsourcing, and product and engineering solutions on a Business Outcomes-based model. Armed with over three decades of IT Services experience and powered by the iTOPS platform, iGATE's multi-location global organization has a talent pool of over 28,300 employees and consistently delivers effective solutions to over 360 Fortune 1000 clients spanning verticals such as: banking and financial services; insurance and healthcare; life sciences; manufacturing, retail, distribution and logistics; media, entertainment, leisure and travel; communication, energy and utilities; public sector; and independent software vendors. Please visit http://www.igate.com for more information.

iGATE Corporation is listed on NASDAQ under the symbol "IGTE."

Use of non-GAAP Financial Measures

This press release contains non-GAAP financial measures as defined by the Securities and Exchange Commission. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles in the United States and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Reconciliations of these non-GAAP measures to their comparable GAAP measures are included in the attached financial tables.

iGATE believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with iGATE's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate iGATE's results of operations in conjunction with the corresponding GAAP measures. These non-GAAP measures should be considered supplemental in nature and should not be considered in isolation or be construed as being more important than comparable GAAP measures.

iGATE believes that providing Adjusted EBITDA and non-GAAP net income and non-GAAP diluted earnings per share in addition to the related GAAP measures provides investors with greater transparency to the information used by iGATE's management in its financial and operational decision-making. These non-GAAP measures are also used by management in connection with iGATE's performance compensation programs.

More specifically, the non-GAAP financial measures contained herein exclude the following items:

  • Amortization of intangible assets: Intangible assets are comprised of the value of customer relationships from the recent acquisition of iGATE Computer Systems Limited (formerly known as Patni Computer Systems Limited and referred to herein as "iGATE Computer") and the previous delisting of iGATE Computer. iGATE incurs charges relating to the amortization of these intangibles. These charges are included in iGATE's GAAP presentation of earnings from operations, operating margin, net income and diluted earnings per share. iGATE excludes these charges for purposes of calculating these non-GAAP measures.
  • Stock-based compensation: Although stock-based compensation is an important component of the compensation of iGATE's employees and executives, determining the fair value of the stock-based instruments involves a high degree of judgment and estimation and the expense recorded may not reflect the actual value realized upon the future exercise or termination of the related stock-based awards. Furthermore, unlike cash compensation, the value of stock-based compensation is determined using a complex formula that incorporates factors, such as market volatility, that are beyond the Company's control. Management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of iGATE's core business.
  • Foreign exchange (gain)/loss: In March 2012, the Company entered into a forward foreign exchange contract to mitigate the risk of changes in foreign exchange rates on payments related to the delisting of iGATE Computer. During the years of 2013 and 2012, the Company recognized foreign currency loss on re-measurement of escrow account balance and foreign exchange gain on re-measurement of redeemable non-controlling interest liability. iGATE believes that eliminating the non-capitalized items for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current performance and comparisons to its past performance.
  • Delisting expenses: iGATE voluntarily delisted the equity shares of its majority owned subsidiary, iGATE Computer, from the National Stock Exchange of India Limited and the Bombay Stock Exchange Limited and the American Depository Shares from the New York Stock Exchange. Delisting is an infrequent activity and expenses incurred in connection with the delisting are inconsistent in amount and are significantly impacted by the timing and nature of the delisting. iGATE believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current operating performance and comparisons to its past operating performance. 
  • Merger and reorganization expenses: iGATE is merging and reorganizing its overseas subsidiaries and branches with a view to simplifying the corporate structure and has incurred legal and professional expenses in this connection. Merger and reorganization is an infrequent activity and expenses incurred in connection therein are inconsistent in amount and significantly impacted by the timing and nature of the reorganization. iGATE believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current operating performance and comparisons to its past operating performance.
  • Preferred dividend and accretion to preferred stock: The Company has issued 8.00% Series B Preferred Stock. The Company also incurred issuance costs which have been netted against the proceeds received from the issuance of Series B Preferred Stock. The Series B Preferred Stock is being accreted over a period of six years. The Company believes that eliminating these expenses for purposes of calculating these non-GAAP measures facilitates a more meaningful evaluation of iGATE's current operating performance and comparisons to its past operating performance.

From time to time in the future, there may be other items that iGATE may exclude in presenting its financial results.

Forward-Looking Statements

Statements contained in this press release regarding the business outlook, the demand for the products and services, and all other statements in this release other than recitation of historical facts are forward-looking statements. Words such as "expect", "potential", "believes", "anticipates", "plans", "intends" and other similar expressions are intended to identify such forward-looking statements. Forward-looking statements in the press release include, without limitation, forecasts of market growth, future revenues, future expectations concerning growth of business, cost competitiveness and expansion of global reach following the acquisition, and other matters that involve known and unknown risks, uncertainties and other factors that may cause results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: difficulties encountered in integrating business; whether certain market segments grow as anticipated; the competitive environment in the information technology services industry and competitive responses to the Company's acquisition of iGATE Computer; and whether iGATE can successfully provide services/products and the degree to which these gain market acceptance. Furthermore, in connection with the iGATE Computer acquisition, the Company has borrowed significant amounts, including through the issuance of high yield notes, and will need to use a significant portion of its cash flows to service such indebtedness, as a result of which the Company might not have sufficient funds to operate its businesses in the manner it intends or has operated in the past. Additional risks relating to the Company are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, as well as the Company's other reports filed with the Securities and Exchange Commission. Actual results may differ materially from those contained in the forward-looking statements in this press release. Any forward-looking statements are based on information currently available to the Company and it assumes no obligation to update these statements as circumstances change. This document does not constitute an offer to purchase or to sell securities in any jurisdiction.

                                      iGATE CORPORATION
                            CONDENSED CONSOLIDATED BALANCE SHEETS
                        (Amounts in thousands, except per share data)

                                                  June 30,           December 31,
                                                     2013                   2012
                                               (unaudited)              (audited)

    ASSETS
    Current assets:
    Cash and cash equivalents                   $ 114,613               $ 95,155
    Restricted cash                                     -                  3,072
    Short-term investments                        275,183                510,816
    Accounts receivable, net                      150,942                162,335
    Unbilled revenues                              89,239                 72,901
    Prepaid expenses and other current assets      36,012                 31,710
    Prepaid income taxes                            8,351                  8,541
    Deferred tax assets                            16,814                 14,655
    Foreign exchange derivative contracts           5,599                    782
    Total current assets                          696,753                899,967

    Deposits and other assets                      22,036                 25,372
    Prepaid income taxes                           27,848                 28,351
    Property and equipment, net                   160,043                167,252
    Leasehold land                                 79,944                 86,933
    Deferred tax assets                            14,966                 30,635
    Goodwill                                      456,720                493,141
    Intangible assets, net                        128,770                144,428
    Total assets                               $1,587,080             $1,876,079

    LIABILITIES, REDEEMABLE NON CONTROLLING
    INTEREST, PREFERRED STOCK AND SHAREHOLDERS'
    EQUITY

    Current liabilities:
    Accounts payable                              $ 7,428                $ 7,799
    Line of credit                                 77,000                 77,000
    Term loans                                     70,000                 35,000
    Accrued payroll and related costs              47,896                 54,802
    Other accrued liabilities                      86,119                 79,008
    Accrued income taxes                            4,091                  9,134
    Foreign exchange derivative contracts           5,349                  7,516
    Deferred revenue                               13,625                 17,890
    Total current liabilities                     311,508                288,149

    Other long-term liabilities                     2,385                  3,265
    Senior notes                                  770,000                770,000
    Term Loans                                          -                263,500
    Accrued income taxes                           19,039                 17,272
    Deferred tax liabilities                       42,721                 55,494
    Total liabilities                           1,145,653              1,397,680

    Redeemable non controlling interest             6,560                 32,422

    Series B Preferred stock , without par value  393,961                378,474

    Shareholders' equity:
    Common Stock, par value $0.01 per share           589                    585
    Common stock in treasury, at cost             (14,714)               (14,714)
    Additional paid-in capital                    191,615                185,340
    Retained earnings                             220,121                170,875
    Accumulated other comprehensive loss         (356,705)              (274,583)
    Total equity                                   40,906                 67,503
    Total liabilities, redeemable
    non controlling interest, preferred
    stock and shareholders equity              $1,587,080             $1,876,079
                                     iGATE CORPORATION
                        CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                  (Amounts in thousands)
                                        (unaudited)

                                       Three Months ended             Six Months ended
                                            June 30,                      June 30,
                                      2013           2012           2013           2012

    Revenues                       $ 283,268      $ 267,993      $ 558,186      $ 531,258

    Cost of revenues (exclusive of
    depreciation and amortization)   175,771        167,682        346,010        325,111

    Gross margin                     107,497        100,311        212,176        206,147

    Selling, general and
    administrative expense            49,350         40,863         92,142         83,284

    Depreciation and amortization      8,595         11,445         17,866         26,730

    Income from operations            49,552         48,003        102,168         96,133

    Other income (loss), net          (4,712)       (30,707)        (7,608)       (39,430)

    Income before income taxes        44,840         17,296         94,560         56,703

    Income tax expense                14,867          4,649         29,827         15,512

    Net income before non-
    controlling interest              29,973         12,647         64,733         41,191
    Noncontrolling interest                -              -              -          4,476
    Net income attributable
    to iGATE Corporation              29,973         12,647         64,733         36,715
    Accretion to Preferred Stock         120             98            235            192
    Preferred dividend                 7,752          7,172         15,252         14,171
    Net income attributable
    to iGATE common shareholders    $ 22,101        $ 5,377       $ 49,246       $ 22,352
                                    iGATE CORPORATION
                                   Earnings Per Share
                       (Amounts in thousands, except per share data)
                                       (unaudited)

                                                        Three Months         Six Months
                                                       Ended June 30,      Ended June 30,
    PARTICULARS                                       2013       2012      2013      2012

    Net income attributable
    to iGATE common shareholders                    $ 22,101   $ 5,377  $ 49,246  $ 22,352
    Add: Dividends on Series B Preferred Stock         7,752     7,172    15,252    14,171
                                                      29,853    12,549    64,498    36,523

    Less: Dividends on
    Series B Preferred Stock                  [A]      7,752     7,172    15,252    14,171
    Undistributed Income                            $ 22,101   $ 5,377  $ 49,246  $ 22,352

    Allocation of Undistributed Income
    Common stock                              [B]     16,479     4,086    36,718    16,984
    Unvested restricted stock                 [C]          6         3        14        13
    Series B Preferred Stock                  [D]      5,616     1,288    12,514     5,355
                                                    $ 22,101   $ 5,377  $ 49,246  $ 22,352

    Shares outstanding for allocation
    of undistributed income:
    Common stock                                      57,301    57,227    57,301    57,227
    Unvested restricted stock                             23        45        23        45
    Series B Preferred Stock                          19,529    18,045    19,529    18,045
                                                      76,853    75,317    76,853    75,317

    Weighted average shares outstanding:
    Common stock                              [E]     57,288    57,163    57,403    56,978
    Unvested restricted stock                 [F]         23        45        23        45
    Series B Preferred Stock                  [G]     19,529    18,045    19,529    18,045
                                                      76,840    75,253    76,955    75,068

    Weighted average common stock outstanding         57,288    57,163    57,403    56,978
    Dilutive effect of stock options
    and restricted shares outstanding                  1,611     1,569     1,683     1,636
    Dilutive weighted average shares
    outstanding                               [H]     58,899    58,732    59,086    58,614

    Distributed earnings per share:
    Series B Preferred Stock                [I=A/G]    $0.40     $0.40     $0.79     $0.79

    Undistributed earnings per share:
    Common stock                            [J=B/E]    $0.29     $0.07     $0.65     $0.30
    Unvested restricted stock               [K=C/F]    $0.29     $0.07     $0.65     $0.30
    Series B Preferred stock                [L=D/G]    $0.29     $0.07     $0.65     $0.30

    Basic earnings per share from operations :
    Common Stock                              [J]      $0.29     $0.07     $0.65     $0.30
    Unvested restricted stock                 [K]      $0.29     $0.07     $0.65     $0.30
    Series B Preferred stock                 [I+L]     $0.69     $0.47     $1.44     $1.09

    Diluted earnings per share
    from operations                        [[B+C]/H]   $0.28     $0.07     $0.62     $0.29

The number of outstanding participative convertible preferred stock for which the earnings per share exceeded the earnings per share of common stock aggregated to 19.5 million and 18.0 million for the three and six months ended June 30, 2013 and 2012, respectively. These shares were excluded from the computation of diluted earnings per share because they were anti-dilutive.

                                                        iGATE CORPORATION
                                  Reconciliation of Selected GAAP Measures to Non-GAAP Measures
                                          (Amounts in thousands, except per share data)
                                                           (unaudited)

                                               Three Months ended        Six Months ended
                                                     June 30,                June 30,
                                                 2013        2012        2013        2012
    GAAP Net income attributable
    to iGATE common shareholders              $ 22,101     $ 5,377    $ 49,246    $ 22,352

    Adjustments
    Preferred dividend and accretion
    to preferred stock                           7,872       7,270      15,487      14,363
    Amortization of Intangible assets            2,692       2,809       5,440       5,920
    Stock Based Compensation                     3,240       2,663       6,365       5,475
    Delisting expenses                               -       1,089          93       3,204
    Merger and reorganization expenses           4,845           -       5,264           -
    Foreign exchange (gain) / loss on
    acquisition hedging and remeasurement           88       4,133         489       3,154
    Forfeiture of vested stock options          (3,005)          -      (3,005)          -
    Income tax adjustments                      (3,327)     (1,880)     (5,008)     (4,007)
    Non-GAAP Net income attributable
    to iGATE common shareholders              $ 34,506    $ 21,461    $ 74,371    $ 50,461

    Weighted average shares outstanding, Basic  57,311      57,208      57,426      57,023
    Add back: assumed preferred
    stock conversion                            19,529      18,045      19,529      18,045
    Non-GAAP weighted average shares
    outstanding, Basic                          76,840      75,253      76,955      75,068

    Weighted average dilutive common
    shares outstanding                          58,899      58,732      59,086      58,614
    Add back: assumed preferred
    stock conversion                            19,529      18,045      19,529      18,045
    Weighted average dilutive common
    equivalent shares outstanding               78,428      76,777      78,615      76,659

    Basic EPS (GAAP) to Basic EPS (Non-GAAP):
    Basic EPS (GAAP) from operations            $ 0.29      $ 0.07      $ 0.65      $ 0.30
    Preferred dividend and accretion
    to preferred stock                            0.10        0.10        0.20        0.19
    Amortization of Intangible assets             0.04        0.04        0.08        0.08
    Stock Based Compensation                      0.04        0.04        0.08        0.07
    Delisting expenses                               -        0.01        0.00        0.04
    Merger and reorganization expenses            0.06           -        0.06           -
    Foreign exchange (gain) / loss on
    acquisition hedging and remeasurement        (0.00)       0.05        0.00        0.04
    Forfeiture of vested stock options           (0.04)           -      (0.04)          -
    Income tax adjustments                       (0.04)      (0.02)      (0.06)      (0.05)
    Basic EPS (Non-GAAP) from operations        $ 0.45      $ 0.29      $ 0.97      $ 0.67

    Diluted EPS (GAAP) to Diluted EPS (Non-GAAP):
    Diluted EPS (GAAP) from operations          $ 0.28      $ 0.07      $ 0.62      $ 0.29
    Preferred dividend and accretion
    to preferred stock                            0.10        0.10        0.20        0.19
    Amortization of Intangible assets             0.04        0.04        0.08        0.08
    Stock Based Compensation                      0.04        0.03        0.08        0.07
    Delisting expenses                               -        0.01        0.00        0.04
    Merger and reorganization expenses            0.06           -        0.07           -
    Foreign exchange (gain) / loss
    on acquisition hedging and remeasurement     (0.00)       0.05        0.00        0.04
    Forfeiture of vested stock options           (0.04)          -       (0.04)          -
    Income tax adjustments                       (0.04)      (0.02)      (0.06)      (0.05)
    Diluted EPS (Non-GAAP) from operations      $ 0.44      $ 0.28      $ 0.95      $ 0.66
                                      iGATE CORPORATION
                 Reconciliation of Net Income, Net of Tax, to Adjusted EBITDA
                                   (Amounts in thousands)
                                         (unaudited)

                                            Three Months ended         Six Months ended
                                                  June 30,                  June 30,
                                             2013         2012         2013         2012

    Net income                            $ 29,973     $ 12,647     $ 64,733     $ 41,191

    Adjustments
    Depreciation and amortization            8,595       11,445       17,866       26,730
    Interest expenses                       24,112       21,032       46,769       40,155
    Income tax expense                      14,867        4,649       29,827       15,512
    Other income, net                      (17,417)      (7,596)     (34,697)     (15,160)
    Foreign exchange (gain) / loss          (1,983)      17,271       (4,464)      14,435
    Stock Based Compensation                 3,240        2,663        6,365        5,475
    Delisting expenses                           0        1,089           93        3,204
    Merger and reorganization expenses       4,845            -        5,264            -
    Adjusted EBITDA (a non-GAAP measure)  $ 66,232     $ 63,200    $ 131,756    $ 131,542

The Company presents the non-GAAP financial measures EBITDA and adjusted EBITDA because management uses these measures to monitor and evaluate the performance of the business and believes that the presentation of these measures will enhance investors' ability to analyze trends in the business and evaluate the Company's underlying performance relative to other companies in the industry.

Non-GAAP Disclosure of Adjusted EBITDA

We present Adjusted EBITDA as a supplemental measure of our performance. We define Adjusted EBITDA as net income attributable to iGATE Corporation plus (i) depreciation and amortization, (ii) interest expense, (iii) income tax expense, minus (iv) other income, net plus (v) foreign exchange (gain)/loss, (vi) stock based compensation (vii) Delisting expenses (viii) Merger and reorganization expenses.  We eliminated the impact of the above as we do not consider them as indicative of our ongoing operating performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation. Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

We present Adjusted EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. In addition, we use Adjusted EBITDA: (i) as a factor in evaluating management's performance when determining incentive compensation, (ii) to evaluate the effectiveness of our business strategies and (iii) because our credit agreement and our indenture use measures similar to Adjusted EBITDA to measure our compliance with certain covenants.

Adjusted EBITDA has limitations as an analytical tool. Some of these limitations are:

  • Adjusted EBITDA does not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments;
  • Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
  • Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and adjusted EBITDA does not reflect any cash requirements for such replacements; non-cash compensation is and will remain a key element of our overall long-term incentive compensation package, although we exclude it as an expense when evaluating our ongoing operating performance for a particular period; Adjusted EBITDA does not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; and other companies in our industry may calculate adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these limitations, adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.

Media Contact
Prabhanjan Deshpande "PD"
+91-80-4104-5006
PD@igate.com  

Investor Contact
Salil Ravindran
+1-510-298-8400
Salil.ravindran@igate.com  

Regional media contacts

India
Shoma Ghosh
Adfactors PR
+91-9820091196
shoma.ghosh@adfactorspr.com  

Amrita Panja
Adfactors PR
+91-9920081123
amrita.panja@adfactorspr.com

North America
Anu Kher    
Gutenberg Communications
+1-646-775-6301
Anu@gutenbergpr.com  

Meagan Ostrowski
Gutenberg Communications
+1-212-810-4394
Meagan@gutenbergpr.com  

Europe
Radha Ahlstrom-Vij
Gutenberg Communications
+44-75-8424-1132
Radha@gutenbergpr.com

.

Modal title

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.