iGATE Corporation Reports Q3 Surge in Profitability
iGATE Corporation
03.11.2011 21:30
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Smooth Integration With Patni Driving Positive Results
FREMONT, Calif., Nov. 3, 2011 (GLOBE NEWSWIRE) -- iGATE Corporation (the
Company) (Nasdaq:IGTE), the first integrated Technology and Operations (iTOPS)
company providing Business Outcomes based solutions under the brand iGATE
Patni, today announced that a successful integration exercise with Patni
Computers has yielded positive results for the Company.
Declaring its financial results for the three and nine months ended September
30, 2011, the Company said that it has seen a spurt in Adjusted EBITDA and EPS
with increased revenues, while the attrition percentage has further decreased
to less than 20% with the combined entity showing clear signs of the
integration efforts being effective.
Third Quarter Highlights
-- Revenues for third quarter 2011 were $265.7 million.
-- Compared with $74.8 million in the third quarter 2010
-- Compared with $170.4 million in the second quarter 2011
-- Net Income for third quarter 2011 was $14.3 million.
-- Compared with $14.3 million in the third quarter 2010
-- Compared with $4.0 million in the second quarter 2011
-- Interest expense impacted net income by $19.5 million
-- Gross margin was 36.9 % for the third quarter 2011.
-- Compared with 39.4% in the third quarter 2010
-- Compared with 34.7% in the second quarter 2011
-- Diluted earnings per share for the third quarter 2011 were $0.10 GAAP;
$0.26 non-GAAP.
-- Compared with $0.25 GAAP in third quarter 2010; $0.28 non-GAAP in third
quarter 2010
-- Compared with ($0.02) GAAP in second quarter 2011; $0.16 non-GAAP in second
quarter 2011
-- Adjusted EBITDA was $55.8 million for the third quarter 2011.
-- Compared with $19.2 million in the third quarter 2010
-- Compared with $28.6 million in the second quarter 2011
-- 24 new customers were added during the third quarter, including six Fortune
1000 companies.
-- Headcount was at 26,216 employees as of September 30, 2011.
Highlights of Nine months ended September 30, 2011
-- Revenues for the nine months ended September 30, 2011 were $511.9 million.
-- Compared with $199.6 million in the corresponding period in 2010
-- Net Income for the nine months ended September 30, 2011 was $36.2 million.
-- Interest expense impacted net income by $32.8 million
-- Gross margin was 36.8% for the nine months ended September 30, 2011.
-- Compared with 39.2% in the corresponding period in 2010.
-- Diluted earnings per share were $0.28 GAAP; $0.63 non-GAAP.
-- Compared with $0.65 GAAP; $0.73 non-GAAP in the corresponding period 2010
-- Adjusted EBITDA was $105.4 million for the nine months ended September 30,
2011.
-- Compared with $49.1 million in the corresponding period in 2010.
Commenting on the Company's third quarter performance, Phaneesh Murthy, Chief
Executive Officer, iGATE Patni said, 'With Phases one and two of integration
largely done, I am pleased with the positive results in the combined company.
We still have a ways to go to fix our new sales engine, but overall we are
making good progress.'
On the IT budgets for 2012, he said, 'We sense that the IT budgets may be
marginally up for some verticals and flat to marginally down for others. We
continue to see increased acceptance of our iTOPS for Business Outcomes
business model which should drive growth in our revenues and profitability. Our
differentiated Product Engineering Service offering is also looking like a
growth driver for the company.'
Sujit Sircar, Chief Financial Officer, iGATE, said, 'The clear uptick in our
third quarter operating margins is testimony to the success of our integration
efforts and the combined entity moving in the right direction. With the
progress made, we feel confident of our goal of 40% in gross margins and 25% in
EBITDA over the coming quarters.'
Operating Results for the three and nine months ending September 30, 2011
Results for the three and nine months ending September 30, 2011 on a GAAP and
non-GAAP basis are provided in the table below.
--------------------------------------------------------------------------------
-
Three Three Increas Nine Nine months Increas
months months e months ended Sept e
ended Sept ended Sept (Decrea ended Sept 30, 2010 (Decrea
30, 2011 30, 2010 se) 30, 2011 se)
--------------------------------------------------------------------------------
Net revenue 265.7 74.8 255.20% 511.9 199.6 156.50%
($Millions
)
--------------------------------------------------------------------------------
Operating 37.7 15.2 148.00% 54.4 37.6 44.70%
margin
($Millions
)
--------------------------------------------------------------------------------
GAAP net 14.3 14.3 -- 36.2 37.0 (2.20%)
income
($Millions
)
--------------------------------------------------------------------------------
GAAP 0.10 0.25 (60.00% 0.28 0.65 (56.90%
diluted ) )
EPS ($)
--------------------------------------------------------------------------------
Non-GAAP 19.2 16.2 18.50% 46.9 41.9 11.90%
net income
($Millions
)
--------------------------------------------------------------------------------
Non-GAAP 0.26 0.28 (7.10%) 0.63 0.73 (13.70%
diluted )
EPS ($)
--------------------------------------------------------------------------------
New customers and projects won in the quarter
-- A leading Fortune 1000 manufacturing company selected iGATE Patni for SIM
assessment and streamlining of its Service Life Cycle Management.
-- A leading industrial automation-focused Fortune 1000 company chose iGATE
Patni for benchmarking services to its online division that offers
web-based remote access, support, and collaboration software and services.
-- A leading manufacturing company in the process of integration with its
parent company has selected iGATE Patni for a managed services engagement
of its infrastructure and operations as well as assistance in the
integration program.
-- A leading U.S.-based Fortune 1000 bank has engaged iGATE Patni for
Application Development and Maintenance Services.
-- A leading European manufacturing company has selected iGATE Patni for a
Product Development engagement on its Pricing and Sensitivity analysis
tool.
-- A Fortune 1000 company engaging in steel and metal manufacturing has chosen
iGATE Patni to expand implementation of Sharepoint and integrate it with
the client's existing SAP systems.
Awards and Recognitions in the quarter
-- iGATE Corporation was awarded the Golden Peacock Global Award for
Excellence in Corporate Governance- 2011 (Americas) by the Institute of
Directors.
-- iGATE Patni was ranked No. 3 in the Data Quest-CMR Best Employer Survey,
2011 for IT Companies in India.
-- iGATE Patni was appraised at CMMI(r)-Dev V1.3 Level 5. Second company
globally to be listed in PARS as appraised at L5 using the new SCAMPI V1.3.
-- iGATE Patni's Bangalore campus was awarded 'Best Ornamental Garden Award
2011' by the Mysore Horticultural Society.
Conference Call and Webcast
iGATE will host a telephone conference call on Friday, November 4, 2011 at 8:00
a.m. Eastern Time to discuss the results of its third quarter ended September
30, 2011. The live discussion can be accessed by dialing 877-407-8037
(domestic) or 201-689-8037 (international). A live webcast of this conference
call will be available on our web site at http://ir.igate.com/investors. The
teleconference replay will be available until November 11, 2011 and can be
accessed by dialing 877-660-6853 (domestic) and 201-612-7415 (international),
passcode 379807 and account number 293. A replay will also be available shortly
after the live call via webcast on the iGATE Investor Relations website at
http://ir.igate.com/investors.
About iGATE Patni
'iGATE Patni' is the common brand identity of two organizations -- iGATE
Corporation and Patni Computer Systems Limited (Patni). With iGATE having
acquired a majority stake in Patni, the two companies, under the common brand
iGATE Patni, jointly provide full-spectrum consulting, technology and business
process outsourcing, and product engineering services on a Business
Outcomes-based model. Armed with over three decades of IT Services experience
and powered by the iTOPS (Integrated Technology and Operations) platform, iGATE
Patni's multi-location global organization with a talent pool of 26,000+
people, consistently delivers effective solutions to over 360 Fortune 1000
clients spanning across verticals like: banking & financial services; insurance
& healthcare; life sciences; manufacturing, retail, distribution & logistics;
media, entertainment leisure & travel; communication, energy & utilities;
public sector; and independent software vendors. Visit: www.igatepatni.com.
iGATE Corporation is listed on NASDAQ (IGTE), and Patni Computer Systems
Limited is listed on the Bombay Stock Exchange (532517), the National Stock
Exchange of India (PATNI) and New York Stock Exchange (PTI).
The iGATE Patni brand logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150
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 comprise value of
customer relationships from the recent Patni acquisition and the previous
delisting of iGATE's Indian subsidiary. 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
aspect 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 our
control. Management believes it is useful to exclude stock-based
compensation in order to better understand the long-term performance of our
core business.
-- Acquisition expenses: iGATE incurs costs related to its acquisitions, which
are inconsistent in amount and frequency and are significantly impacted by
the timing and nature of iGATE's acquisitions. 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.
-- Forex gain: The Company entered into forward foreign exchange contracts to
mitigate the risk of changes in foreign exchange rates on payments related
to the acquisition of Patni. We also recognized favorable foreign currency
gain on re-measurement of escrow account balance maintained for
facilitating payments related to Patni acquisition. 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.
-- Severance Cost: As a result of the acquisition of Patni, iGATE incurred
severance costs in connection with the termination of the services of some
of Patni's employees.
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 benefits of the Patni
acquisition, 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 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 our acquisition of
Patni; and whether the companies can successfully provide services/products and
the degree to which these gain market acceptance. Furthermore, in connection
with the Patni acquisition, the Company has borrowed significant amounts,
including through the issuance of high yield notes, and will have 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, 2010, as well as the Company's other reports
filed with the Securities and Exchange Commission and risks related to the
business of Patni as set forth in Patni's Annual Report in Form 20-F for the
fiscal year ended December 31, 2010. 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)
September 30, 2011 December 31, 2010
(unaudited) (audited)
--------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 84,956 $ 67,924
Short-term investments 347,453 71,915
Accounts receivable, net 148,452 37,946
Unbilled revenues 79,191 13,893
Prepaid expenses and other current 21,782 5,380
assets
Foreign exchange derivative contracts 694 794
Deferred tax assets 27,242 5,422
Prepaid income taxes 17,244 --
Receivable from Mastech Holdings Inc. 233 140
--------------------------------------
Total current assets 727,247 203,414
Investment in affiliate 387 --
Deposits and other assets 131,415 5,443
Property and equipment, net 195,913 52,950
Prepaid income taxes 6,210 --
Deferred tax assets 25,320 10,117
Goodwill 575,443 31,741
Intangible assets, net 167,805 1,378
--------------------------------------
Total assets $ 1,829,740 $ 305,043
======================================
LIABILITIES, PREFERRED STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,656 $ 3,291
Accrued payroll and related costs 73,401 19,709
Accrued income taxes 4,727 715
Line of credit 52,000 --
Other accrued liabilities 95,000 31,354
Foreign exchange derivative contracts 8,804 --
Deferred revenue 21,043 667
--------------------------------------
Total current liabilities 263,631 55,736
Other long-term liabilities 5,618 1,251
Accrued income taxes 24,220 --
Foreign exchange derivative contracts 5,428 --
Deferred tax liabilities 58,020 --
Senior Notes 770,000 --
--------------------------------------
Total liabilities 1,126,917 56,987
Series B Preferred stock, without par 341,919 --
value
Shareholders' equity:
Common Stock, par value $0.01 per share 578 572
Additional paid-in capital 198,870 188,389
Retained earnings 96,320 75,474
Common stock in treasury, at cost (14,714) (14,714)
Accumulated other comprehensive loss (135,462) (1,665)
--------------------------------------
Total iGATE Corporation shareholders' 145,592 248,056
equity
Non controlling interest 215,312 --
--------------------------------------
Total shareholders' equity 360,904 248,056
--------------------------------------
Total liabilities and shareholders' $ 1,829,740 $ 305,043
equity
======================================
iGATE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands)
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
------------------------------------------
2011 2010 2011* 2010
------------------------------------------
Revenues $ 265,724 $ 74,845 $ 511,939 $ 199,584
Cost of revenues (exclusive of 167,565 45,378 323,563 121,446
Depreciation and amortization)
------------------------------------------
Gross margin 98,159 29,467 188,376 78,138
Selling, general and administrative 46,745 12,056 108,915 33,904
expense
Depreciation and amortization 13,667 2,251 25,032 6,599
------------------------------------------
Income from operations 37,747 15,160 54,429 37,635
Other (expenses) income, net (23,337) 961 (7,487) 2,769
------------------------------------------
Income before income taxes 14,410 16,121 46,942 40,404
Income tax (benefit) expense (2,793) 1,856 7,314 3,371
------------------------------------------
Net income before noncontrolling 17,203 14,265 39,628 37,033
interest
Noncontrolling interest 2,950 -- 3,437 --
------------------------------------------
Net income attributable to iGATE 14,253 14,265 36,191 37,033
Corporation
Accretion to Preferred Stock 84 -- 214 --
Preferred dividend 6,769 -- 15,131 --
------------------------------------------
Net income attributable to iGATE $ 7,400 $ 14,265 $ 20,846 $ 37,033
Corporation common shareholders
==========================================
*Includes Patni revenues since May 16, 2011.
iGATE CORPORATION
Earnings Per Share
(Amounts in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended September
September 30, 30,
--------------------------------------------------------------------------------
PARTICULARS 2011 2010 2011** 2010
--------------------------------------------------------------------------------
Net income $ 7,400 $ 14,265 $ 20,846 $ 37,033
attributab
le to iGATE
common
shareholde
rs
Add: 6,769 -- 15,131 --
Dividends
on Series
B
Preferred
Stock
--------- ---------- ---------- ---------
14,169 14,265 35,977 37,033
Less:
Dividends
paid on
Common $ -- $ -- $ -- $ 6,076
Stock
Unvested -- -- -- 60
restricte
d stock
Series B 6,769 6,769 -- -- 15,131 15,131 -- 6,136
Preferred
Stock
--------------------------------------------------------------------
Undistribut $ 7,400 $ 14,265 $ 20,846 $ 30,897
ed Income
========= ========== ========== =========
Allocation
of
Undistribu
ted Income
Common 5,674 14,181 15,983 30,667
stock
Unvested 22 84 62 230
restricte
d stock
Series B 1,704 -- 4,801 --
Preferred
Stock
--------- ---------- ---------- ---------
$ 7,400 $ 14,265 $ 20,846 $ 30,897
--------- ========== ========== =========
Shares outstanding
for allocation of
undistributed
income:
Common 56,598 55,862 56,598 55,862
stock
Unvested 219 330 219 330
restricte
d stock
Series B 17,002 -- 17,002 --
Preferred
Stock
--------- ---------- ---------- ---------
73,819 56,192 73,819 56,192
========= ========== ========== =========
Weighted
average
shares
outstandin
g:
Common 56,616 55,762 56,478 55,493
stock
Unvested 221 330 224 417
restricte
d stock
--------- ---------- ---------- ---------
56,837 56,092 56,702 55,910
========= ========== ========== =========
Weighted 56,616 55,762 56,478 55,493
average
common
stock
outstandin
g
Dilutive effect of 1,330 1,736 1,428 1,690
stock options and
restricted shares
outstanding
--------- ---------- ---------- ---------
Dilutive 57,946 57,498 57,906 57,183
weighted
average
shares
outstandin
g
========= ========== ========== =========
Distributed
earnings
per share:
Common $ -- $ -- $ -- $ 0.11
stock
Unvested $ -- $ -- $ -- $ 0.11
restricte
d stock
Basic
earnings
per share
from
operations
Common $ 0.10 $ 0.25 $ 0.28 $ 0.66
Stock
Unvested $ 0.10 $ 0.25 $ 0.28 $ 0.66
restricte
d stock
Diluted $ 0.10 $ 0.25 $ 0.28 $ 0.65
earnings
per share
from
operations
**Includes Patni revenue since May 16, 2011
The number of outstanding participative convertible preferred stock for which
the earnings per share exceeded the earnings per share of common stock
aggregated to 17.0 million shares for the three and nine months ended Sep 30,
2011. These shares were excluded from the computation of diluted earnings per
share as they were anti-dilutive.
iGATE CORPORATION
Reconciliation of Net income, net of tax, to Adjusted EBITDA
(Amounts in thousands)
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
----------------------------------------
2011 2010 2011 2010
----------------------------------------
Net income attributable to iGATE $ 14,253 $ 14,265 $ 36,191 $ 37,033
Corporation
Adjustments
Depreciation and amortization 13,667 2,251 25,032 6,599
Interest expenses 19,546 47 32,834 80
Income tax (benefit) expense (2,793) 1,856 7,314 3,371
Noncontrolling interest 2,950 -- 3,437 --
Other income, net (4,083) (1,083) (8,501) (4,002)
Foreign exchange (gain)/loss 7,874 75 (16,846) 1,153
Stock Based Compensation 4,346 1,800 8,868 4,859
Acquisition expenses -- -- 10,914 --
Severance expenses -- -- 6,164 --
----------------------------------------
Adjusted EBITDA (a non-GAAP measure) $ 55,760 $ 19,211 $ 105,407 $ 49,094
========================================
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 loss, (vi) stock based
compensation (vii) acquisition expenses and (viii) severance expenses. We
eliminated the impact of the above as we do not consider them as indicative of
our ongoing operating performance. These adjustments are itemized below. 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.
iGATE CORPORATION
Reconciliation of Selected GAAP measures to Non-GAAP measures
(Amounts in thousands, except per share data)
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
---------------------------------------
2011 2010 2011 2010
---------------------------------------
Net income attributable to iGATE $ 14,253 $ 14,265 $ 36,191 $ 37,033
Corporation
Adjustments
Amortization of Intangible assets, net 2,119 191 3,640 577
of taxes
Stock based Compensation, net of taxes 3,508 1,717 6,726 4,280
Acquisition expenses -- -- 10,914 --
Forex gain on acquisition hedging and (937) -- (15,251) --
remeasurement, net of taxes
Severance cost, net of taxes 287 -- 4,675 --
---------------------------------------
Non-GAAP Net income $ 19,230 $ 16,173 $ 46,895 $ 41,890
=======================================
Basic earnings per share from operations
GAAP $ 0.10 $ 0.25 $ 0.28 $ 0.66
Non-GAAP $ 0.26 $ 0.29 $ 0.64 $ 0.75
Diluted earnings per share from
operations
GAAP $ 0.10 $ 0.25 $ 0.28 $ 0.65
Non-GAAP $ 0.26 $ 0.28 $ 0.63 $ 0.73
Weighted average shares outstanding, 73,839* 56,092 73,704* 55,910
Basic
=======================================
Weighted average dilutive common 74,948* 57,498 74,908* 57,183
equivalent shares outstanding
=======================================
*Includes assumed conversion of 17 million shares of Series B Preferred Stock as
of January 1, 2011.
Media Contact
Prabhanjan Deshpande 'PD'
+91 80 4104 5006
PD@igatepatni.com
Investor Contact
Araceli Roiz
+1 510 896 3007
araceli.roiz@igatepatni.com
News Source: NASDAQ OMX
03.11.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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---------------------------------------------------------------------------
Language: English
Company: iGATE Corporation
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US9901036403
WKN:
End of Announcement DGAP News-Service
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iGATE Corporation
03.11.2011 21:30
---------------------------------------------------------------------------
Smooth Integration With Patni Driving Positive Results
FREMONT, Calif., Nov. 3, 2011 (GLOBE NEWSWIRE) -- iGATE Corporation (the
Company) (Nasdaq:IGTE), the first integrated Technology and Operations (iTOPS)
company providing Business Outcomes based solutions under the brand iGATE
Patni, today announced that a successful integration exercise with Patni
Computers has yielded positive results for the Company.
Declaring its financial results for the three and nine months ended September
30, 2011, the Company said that it has seen a spurt in Adjusted EBITDA and EPS
with increased revenues, while the attrition percentage has further decreased
to less than 20% with the combined entity showing clear signs of the
integration efforts being effective.
Third Quarter Highlights
-- Revenues for third quarter 2011 were $265.7 million.
-- Compared with $74.8 million in the third quarter 2010
-- Compared with $170.4 million in the second quarter 2011
-- Net Income for third quarter 2011 was $14.3 million.
-- Compared with $14.3 million in the third quarter 2010
-- Compared with $4.0 million in the second quarter 2011
-- Interest expense impacted net income by $19.5 million
-- Gross margin was 36.9 % for the third quarter 2011.
-- Compared with 39.4% in the third quarter 2010
-- Compared with 34.7% in the second quarter 2011
-- Diluted earnings per share for the third quarter 2011 were $0.10 GAAP;
$0.26 non-GAAP.
-- Compared with $0.25 GAAP in third quarter 2010; $0.28 non-GAAP in third
quarter 2010
-- Compared with ($0.02) GAAP in second quarter 2011; $0.16 non-GAAP in second
quarter 2011
-- Adjusted EBITDA was $55.8 million for the third quarter 2011.
-- Compared with $19.2 million in the third quarter 2010
-- Compared with $28.6 million in the second quarter 2011
-- 24 new customers were added during the third quarter, including six Fortune
1000 companies.
-- Headcount was at 26,216 employees as of September 30, 2011.
Highlights of Nine months ended September 30, 2011
-- Revenues for the nine months ended September 30, 2011 were $511.9 million.
-- Compared with $199.6 million in the corresponding period in 2010
-- Net Income for the nine months ended September 30, 2011 was $36.2 million.
-- Compared with $37.0 million in the corresponding period in 2010
-- Interest expense impacted net income by $32.8 million
-- Gross margin was 36.8% for the nine months ended September 30, 2011.
-- Compared with 39.2% in the corresponding period in 2010.
-- Diluted earnings per share were $0.28 GAAP; $0.63 non-GAAP.
-- Compared with $0.65 GAAP; $0.73 non-GAAP in the corresponding period 2010
-- Adjusted EBITDA was $105.4 million for the nine months ended September 30,
2011.
-- Compared with $49.1 million in the corresponding period in 2010.
Commenting on the Company's third quarter performance, Phaneesh Murthy, Chief
Executive Officer, iGATE Patni said, 'With Phases one and two of integration
largely done, I am pleased with the positive results in the combined company.
We still have a ways to go to fix our new sales engine, but overall we are
making good progress.'
On the IT budgets for 2012, he said, 'We sense that the IT budgets may be
marginally up for some verticals and flat to marginally down for others. We
continue to see increased acceptance of our iTOPS for Business Outcomes
business model which should drive growth in our revenues and profitability. Our
differentiated Product Engineering Service offering is also looking like a
growth driver for the company.'
Sujit Sircar, Chief Financial Officer, iGATE, said, 'The clear uptick in our
third quarter operating margins is testimony to the success of our integration
efforts and the combined entity moving in the right direction. With the
progress made, we feel confident of our goal of 40% in gross margins and 25% in
EBITDA over the coming quarters.'
Operating Results for the three and nine months ending September 30, 2011
Results for the three and nine months ending September 30, 2011 on a GAAP and
non-GAAP basis are provided in the table below.
--------------------------------------------------------------------------------
-
Three Three Increas Nine Nine months Increas
months months e months ended Sept e
ended Sept ended Sept (Decrea ended Sept 30, 2010 (Decrea
30, 2011 30, 2010 se) 30, 2011 se)
--------------------------------------------------------------------------------
Net revenue 265.7 74.8 255.20% 511.9 199.6 156.50%
($Millions
)
--------------------------------------------------------------------------------
Operating 37.7 15.2 148.00% 54.4 37.6 44.70%
margin
($Millions
)
--------------------------------------------------------------------------------
GAAP net 14.3 14.3 -- 36.2 37.0 (2.20%)
income
($Millions
)
--------------------------------------------------------------------------------
GAAP 0.10 0.25 (60.00% 0.28 0.65 (56.90%
diluted ) )
EPS ($)
--------------------------------------------------------------------------------
Non-GAAP 19.2 16.2 18.50% 46.9 41.9 11.90%
net income
($Millions
)
--------------------------------------------------------------------------------
Non-GAAP 0.26 0.28 (7.10%) 0.63 0.73 (13.70%
diluted )
EPS ($)
--------------------------------------------------------------------------------
New customers and projects won in the quarter
-- A leading Fortune 1000 manufacturing company selected iGATE Patni for SIM
assessment and streamlining of its Service Life Cycle Management.
-- A leading industrial automation-focused Fortune 1000 company chose iGATE
Patni for benchmarking services to its online division that offers
web-based remote access, support, and collaboration software and services.
-- A leading manufacturing company in the process of integration with its
parent company has selected iGATE Patni for a managed services engagement
of its infrastructure and operations as well as assistance in the
integration program.
-- A leading U.S.-based Fortune 1000 bank has engaged iGATE Patni for
Application Development and Maintenance Services.
-- A leading European manufacturing company has selected iGATE Patni for a
Product Development engagement on its Pricing and Sensitivity analysis
tool.
-- A Fortune 1000 company engaging in steel and metal manufacturing has chosen
iGATE Patni to expand implementation of Sharepoint and integrate it with
the client's existing SAP systems.
Awards and Recognitions in the quarter
-- iGATE Corporation was awarded the Golden Peacock Global Award for
Excellence in Corporate Governance- 2011 (Americas) by the Institute of
Directors.
-- iGATE Patni was ranked No. 3 in the Data Quest-CMR Best Employer Survey,
2011 for IT Companies in India.
-- iGATE Patni was appraised at CMMI(r)-Dev V1.3 Level 5. Second company
globally to be listed in PARS as appraised at L5 using the new SCAMPI V1.3.
-- iGATE Patni's Bangalore campus was awarded 'Best Ornamental Garden Award
2011' by the Mysore Horticultural Society.
Conference Call and Webcast
iGATE will host a telephone conference call on Friday, November 4, 2011 at 8:00
a.m. Eastern Time to discuss the results of its third quarter ended September
30, 2011. The live discussion can be accessed by dialing 877-407-8037
(domestic) or 201-689-8037 (international). A live webcast of this conference
call will be available on our web site at http://ir.igate.com/investors. The
teleconference replay will be available until November 11, 2011 and can be
accessed by dialing 877-660-6853 (domestic) and 201-612-7415 (international),
passcode 379807 and account number 293. A replay will also be available shortly
after the live call via webcast on the iGATE Investor Relations website at
http://ir.igate.com/investors.
About iGATE Patni
'iGATE Patni' is the common brand identity of two organizations -- iGATE
Corporation and Patni Computer Systems Limited (Patni). With iGATE having
acquired a majority stake in Patni, the two companies, under the common brand
iGATE Patni, jointly provide full-spectrum consulting, technology and business
process outsourcing, and product engineering services on a Business
Outcomes-based model. Armed with over three decades of IT Services experience
and powered by the iTOPS (Integrated Technology and Operations) platform, iGATE
Patni's multi-location global organization with a talent pool of 26,000+
people, consistently delivers effective solutions to over 360 Fortune 1000
clients spanning across verticals like: banking & financial services; insurance
& healthcare; life sciences; manufacturing, retail, distribution & logistics;
media, entertainment leisure & travel; communication, energy & utilities;
public sector; and independent software vendors. Visit: www.igatepatni.com.
iGATE Corporation is listed on NASDAQ (IGTE), and Patni Computer Systems
Limited is listed on the Bombay Stock Exchange (532517), the National Stock
Exchange of India (PATNI) and New York Stock Exchange (PTI).
The iGATE Patni brand logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150
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 comprise value of
customer relationships from the recent Patni acquisition and the previous
delisting of iGATE's Indian subsidiary. 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
aspect 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 our
control. Management believes it is useful to exclude stock-based
compensation in order to better understand the long-term performance of our
core business.
-- Acquisition expenses: iGATE incurs costs related to its acquisitions, which
are inconsistent in amount and frequency and are significantly impacted by
the timing and nature of iGATE's acquisitions. 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.
-- Forex gain: The Company entered into forward foreign exchange contracts to
mitigate the risk of changes in foreign exchange rates on payments related
to the acquisition of Patni. We also recognized favorable foreign currency
gain on re-measurement of escrow account balance maintained for
facilitating payments related to Patni acquisition. 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.
-- Severance Cost: As a result of the acquisition of Patni, iGATE incurred
severance costs in connection with the termination of the services of some
of Patni's employees.
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 benefits of the Patni
acquisition, 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 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 our acquisition of
Patni; and whether the companies can successfully provide services/products and
the degree to which these gain market acceptance. Furthermore, in connection
with the Patni acquisition, the Company has borrowed significant amounts,
including through the issuance of high yield notes, and will have 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, 2010, as well as the Company's other reports
filed with the Securities and Exchange Commission and risks related to the
business of Patni as set forth in Patni's Annual Report in Form 20-F for the
fiscal year ended December 31, 2010. 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)
September 30, 2011 December 31, 2010
(unaudited) (audited)
--------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 84,956 $ 67,924
Short-term investments 347,453 71,915
Accounts receivable, net 148,452 37,946
Unbilled revenues 79,191 13,893
Prepaid expenses and other current 21,782 5,380
assets
Foreign exchange derivative contracts 694 794
Deferred tax assets 27,242 5,422
Prepaid income taxes 17,244 --
Receivable from Mastech Holdings Inc. 233 140
--------------------------------------
Total current assets 727,247 203,414
Investment in affiliate 387 --
Deposits and other assets 131,415 5,443
Property and equipment, net 195,913 52,950
Prepaid income taxes 6,210 --
Deferred tax assets 25,320 10,117
Goodwill 575,443 31,741
Intangible assets, net 167,805 1,378
--------------------------------------
Total assets $ 1,829,740 $ 305,043
======================================
LIABILITIES, PREFERRED STOCK AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 8,656 $ 3,291
Accrued payroll and related costs 73,401 19,709
Accrued income taxes 4,727 715
Line of credit 52,000 --
Other accrued liabilities 95,000 31,354
Foreign exchange derivative contracts 8,804 --
Deferred revenue 21,043 667
--------------------------------------
Total current liabilities 263,631 55,736
Other long-term liabilities 5,618 1,251
Accrued income taxes 24,220 --
Foreign exchange derivative contracts 5,428 --
Deferred tax liabilities 58,020 --
Senior Notes 770,000 --
--------------------------------------
Total liabilities 1,126,917 56,987
Series B Preferred stock, without par 341,919 --
value
Shareholders' equity:
Common Stock, par value $0.01 per share 578 572
Additional paid-in capital 198,870 188,389
Retained earnings 96,320 75,474
Common stock in treasury, at cost (14,714) (14,714)
Accumulated other comprehensive loss (135,462) (1,665)
--------------------------------------
Total iGATE Corporation shareholders' 145,592 248,056
equity
Non controlling interest 215,312 --
--------------------------------------
Total shareholders' equity 360,904 248,056
--------------------------------------
Total liabilities and shareholders' $ 1,829,740 $ 305,043
equity
======================================
iGATE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands)
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
------------------------------------------
2011 2010 2011* 2010
------------------------------------------
Revenues $ 265,724 $ 74,845 $ 511,939 $ 199,584
Cost of revenues (exclusive of 167,565 45,378 323,563 121,446
Depreciation and amortization)
------------------------------------------
Gross margin 98,159 29,467 188,376 78,138
Selling, general and administrative 46,745 12,056 108,915 33,904
expense
Depreciation and amortization 13,667 2,251 25,032 6,599
------------------------------------------
Income from operations 37,747 15,160 54,429 37,635
Other (expenses) income, net (23,337) 961 (7,487) 2,769
------------------------------------------
Income before income taxes 14,410 16,121 46,942 40,404
Income tax (benefit) expense (2,793) 1,856 7,314 3,371
------------------------------------------
Net income before noncontrolling 17,203 14,265 39,628 37,033
interest
Noncontrolling interest 2,950 -- 3,437 --
------------------------------------------
Net income attributable to iGATE 14,253 14,265 36,191 37,033
Corporation
Accretion to Preferred Stock 84 -- 214 --
Preferred dividend 6,769 -- 15,131 --
------------------------------------------
Net income attributable to iGATE $ 7,400 $ 14,265 $ 20,846 $ 37,033
Corporation common shareholders
==========================================
*Includes Patni revenues since May 16, 2011.
iGATE CORPORATION
Earnings Per Share
(Amounts in thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended September
September 30, 30,
--------------------------------------------------------------------------------
PARTICULARS 2011 2010 2011** 2010
--------------------------------------------------------------------------------
Net income $ 7,400 $ 14,265 $ 20,846 $ 37,033
attributab
le to iGATE
common
shareholde
rs
Add: 6,769 -- 15,131 --
Dividends
on Series
B
Preferred
Stock
--------- ---------- ---------- ---------
14,169 14,265 35,977 37,033
Less:
Dividends
paid on
Common $ -- $ -- $ -- $ 6,076
Stock
Unvested -- -- -- 60
restricte
d stock
Series B 6,769 6,769 -- -- 15,131 15,131 -- 6,136
Preferred
Stock
--------------------------------------------------------------------
Undistribut $ 7,400 $ 14,265 $ 20,846 $ 30,897
ed Income
========= ========== ========== =========
Allocation
of
Undistribu
ted Income
Common 5,674 14,181 15,983 30,667
stock
Unvested 22 84 62 230
restricte
d stock
Series B 1,704 -- 4,801 --
Preferred
Stock
--------- ---------- ---------- ---------
$ 7,400 $ 14,265 $ 20,846 $ 30,897
--------- ========== ========== =========
Shares outstanding
for allocation of
undistributed
income:
Common 56,598 55,862 56,598 55,862
stock
Unvested 219 330 219 330
restricte
d stock
Series B 17,002 -- 17,002 --
Preferred
Stock
--------- ---------- ---------- ---------
73,819 56,192 73,819 56,192
========= ========== ========== =========
Weighted
average
shares
outstandin
g:
Common 56,616 55,762 56,478 55,493
stock
Unvested 221 330 224 417
restricte
d stock
--------- ---------- ---------- ---------
56,837 56,092 56,702 55,910
========= ========== ========== =========
Weighted 56,616 55,762 56,478 55,493
average
common
stock
outstandin
g
Dilutive effect of 1,330 1,736 1,428 1,690
stock options and
restricted shares
outstanding
--------- ---------- ---------- ---------
Dilutive 57,946 57,498 57,906 57,183
weighted
average
shares
outstandin
g
========= ========== ========== =========
Distributed
earnings
per share:
Common $ -- $ -- $ -- $ 0.11
stock
Unvested $ -- $ -- $ -- $ 0.11
restricte
d stock
Basic
earnings
per share
from
operations
Common $ 0.10 $ 0.25 $ 0.28 $ 0.66
Stock
Unvested $ 0.10 $ 0.25 $ 0.28 $ 0.66
restricte
d stock
Diluted $ 0.10 $ 0.25 $ 0.28 $ 0.65
earnings
per share
from
operations
**Includes Patni revenue since May 16, 2011
The number of outstanding participative convertible preferred stock for which
the earnings per share exceeded the earnings per share of common stock
aggregated to 17.0 million shares for the three and nine months ended Sep 30,
2011. These shares were excluded from the computation of diluted earnings per
share as they were anti-dilutive.
iGATE CORPORATION
Reconciliation of Net income, net of tax, to Adjusted EBITDA
(Amounts in thousands)
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
----------------------------------------
2011 2010 2011 2010
----------------------------------------
Net income attributable to iGATE $ 14,253 $ 14,265 $ 36,191 $ 37,033
Corporation
Adjustments
Depreciation and amortization 13,667 2,251 25,032 6,599
Interest expenses 19,546 47 32,834 80
Income tax (benefit) expense (2,793) 1,856 7,314 3,371
Noncontrolling interest 2,950 -- 3,437 --
Other income, net (4,083) (1,083) (8,501) (4,002)
Foreign exchange (gain)/loss 7,874 75 (16,846) 1,153
Stock Based Compensation 4,346 1,800 8,868 4,859
Acquisition expenses -- -- 10,914 --
Severance expenses -- -- 6,164 --
----------------------------------------
Adjusted EBITDA (a non-GAAP measure) $ 55,760 $ 19,211 $ 105,407 $ 49,094
========================================
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 loss, (vi) stock based
compensation (vii) acquisition expenses and (viii) severance expenses. We
eliminated the impact of the above as we do not consider them as indicative of
our ongoing operating performance. These adjustments are itemized below. 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.
iGATE CORPORATION
Reconciliation of Selected GAAP measures to Non-GAAP measures
(Amounts in thousands, except per share data)
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
---------------------------------------
2011 2010 2011 2010
---------------------------------------
Net income attributable to iGATE $ 14,253 $ 14,265 $ 36,191 $ 37,033
Corporation
Adjustments
Amortization of Intangible assets, net 2,119 191 3,640 577
of taxes
Stock based Compensation, net of taxes 3,508 1,717 6,726 4,280
Acquisition expenses -- -- 10,914 --
Forex gain on acquisition hedging and (937) -- (15,251) --
remeasurement, net of taxes
Severance cost, net of taxes 287 -- 4,675 --
---------------------------------------
Non-GAAP Net income $ 19,230 $ 16,173 $ 46,895 $ 41,890
=======================================
Basic earnings per share from operations
GAAP $ 0.10 $ 0.25 $ 0.28 $ 0.66
Non-GAAP $ 0.26 $ 0.29 $ 0.64 $ 0.75
Diluted earnings per share from
operations
GAAP $ 0.10 $ 0.25 $ 0.28 $ 0.65
Non-GAAP $ 0.26 $ 0.28 $ 0.63 $ 0.73
Weighted average shares outstanding, 73,839* 56,092 73,704* 55,910
Basic
=======================================
Weighted average dilutive common 74,948* 57,498 74,908* 57,183
equivalent shares outstanding
=======================================
*Includes assumed conversion of 17 million shares of Series B Preferred Stock as
of January 1, 2011.
Media Contact
Prabhanjan Deshpande 'PD'
+91 80 4104 5006
PD@igatepatni.com
Investor Contact
Araceli Roiz
+1 510 896 3007
araceli.roiz@igatepatni.com
News Source: NASDAQ OMX
03.11.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: iGATE Corporation
United States
Phone:
Fax:
E-mail:
Internet:
ISIN: US9901036403
WKN:
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