Virtusa records US$ 248mn revenue for 2Q

Virtusa Corporation reported consolidated financial results for the second quarter fiscal 2018, ended September 30, 2017 recently.

Revenue for the second quarter of fiscal 2018 was US$248.2 million, an increase of 9.2 percent sequentially and 18.1 percent year-over-year.  On a constant currency basis, second quarter revenue increased 8.6 percent sequentially and 17.9 percent year-over-year. 

Virtusa reported GAAP income from operations of US $10.3 million for the second quarter of fiscal 2018, compared to US $6.1 million for the first quarter of fiscal 2018 and $3.5 million for the second quarter of fiscal 2017. 

GAAP net income available to common shareholders for the second quarter of fiscal 2018 was US $3.7 million, or $0.12 per diluted share, compared to US $3.0 million, or US $0.10 per diluted share, for the first quarter of fiscal 2018, and $3.2 million, or US $0.11 per diluted share, for the second quarter of fiscal 2017. 

The company ended the second quarter of fiscal 2018 with US $254.0 million of cash, cash equivalents, and short-term and long-term investments.  Cash flow from operations was US $28.8 million for the second quarter of fiscal 2018. 

Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “Our strategy to expand our addressable market by investing in industry leading digital engineering services, operational excellence, and industry solutions is playing out well for us. We delivered market-leading sequential revenue growth and we are raising our full fiscal year guidance. The number of leading enterprises that rely on Virtusa for their most strategic end-to-end digital and transformational programs continues to grow. This gives us confidence in our growth strategy and long-term prospects.”

Ranjan Kalia, Chief Financial Officer, said, “During the second quarter, we delivered strong sequential revenue growth that exceeded the high end of our prior guidance.  We generated double-digit sequential and year-over-year operating income growth and strong sequential margin accretion. In addition, EPS growth was faster than revenue growth. Our second quarter momentum is expected to continue for the remainder of the fiscal year allowing us to raise our full fiscal year guidance.”