Virtusa posts $134 mn 1Q16 revenue, up 20% yoy

4 August 2015 05:31 am Views - 1269

Business consulting and IT outsourcing company Virtusa Corporation reported consolidated financial results for the first quarter fiscal year 2016, ended June 30, 2015.

Revenue for the first quarter of fiscal 2016 was $134.8 million, an increase of 7 percent sequentially and 20 percent year-over-year, including contribution from the acquisition of Apparatus, Inc. which closed on April 1, 2015.  On a constant currency basis, first quarter revenue increased 7 percent sequentially and 22 percent year-over-year. 

Virtusa reported GAAP income from operations of $12.4 million for the first quarter of fiscal 2016, compared to $14.5 million for the fourth quarter of fiscal 2015, and an increase compared to $11.2 million for the first quarter of fiscal 2015.  

On a GAAP basis, net income for the first quarter of fiscal 2016 was $10.1 million, or $0.34 per diluted share, compared to $11.6 million, or $0.39 per diluted share, for the fourth quarter of fiscal 2015, and an increase from $9.0 million, or $0.31 per diluted share, for the first quarter of fiscal 2015.  

Non-GAAP income from operations, which excludes stock-based compensation expense and acquisition related expenses, was $18.2 million for the first quarter of fiscal 2016, compared to $19.2 million for the fourth quarter of fiscal 2015, and an increase compared to $14.0 million for the first quarter of fiscal 2015.  

Non-GAAP net income, which excludes stock-based compensation expense, acquisition related expenses, and foreign currency transaction gains and losses, each net of tax, for the first quarter of fiscal 2016 was $14.4 million, or $0.48 per diluted share, compared to $ 15.1 million, or $0.51 per diluted share, for the fourth quarter of fiscal 2015, and compared to $11.1 million, or $0.38 per diluted share, for the first quarter of fiscal 2015.

The Company ended the first quarter of fiscal 2016 with $200.7 million of cash, cash equivalents, and short-term and long-term investments. During the June quarter Virtusa invested $33.4 million of cash to complete the acquisition of Apparatus, Inc. 

On July 28, 2015, Virtusa acquired the business of Agora Group, Inc., an IT consulting organization headquartered in Atlanta, Georgia, USA, focused on implementing and integrating business process management (BPM) solutions on leading BPM suites. Agora Group employs approximately 60 experienced practitioners with deep knowledge in BPM-related solutions.

Kris Canekeratne, Virtusa’s Chairman and CEO stated, “The first quarter was a strong start to fiscal year 2016. Our growth continues to be driven by our differentiated value proposition, which enables our clients to improve operating efficiencies and reduce costs through our industry-leading solutions.  Simultaneously, we help clients reimagine their business and expand their addressable market through our transformational digital solutions.”

Ranjan Kalia, Chief Financial Officer, said, “We are pleased with our first quarter results, and believe we are well positioned to achieve our fiscal year 2016 outlook. Kalia added, “The Apparatus integration remains on track with initial success generating synergy revenue opportunities within the Virtusa client base.”
The second quarter fiscal 2016 revenue is expected to be in the range of $140.3 to $143.3 million. GAAP diluted EPS is expected to be in the range of $0.33 to $0.35 and non-GAAP diluted EPS is expected to be in the range of $0.47 to $0.49.

Fiscal year 2016 revenue is expected to be in the range of $582 to $594 million. GAAP diluted EPS is expected to be in the range of $1.53 to $1.65 and non-GAAP diluted EPS is expected to be in the range of $2.13 to $2.25.

The Company’s second quarter and fiscal year 2016 diluted EPS both estimate an average share count of approximately 30.0 million  (assuming no further exercises of stock-based awards) and assume a stock price of $50.56, which was derived from the average closing price of the Company’s stock over the five trading days ended on July 27, 2015.