ASIAN-BASED IGATE’S Q3 NET INCOME UP 60% AT US$14.3 MLN

US-based, Indian-focused IT outsourcing firm iGATE on Wednesday said its net income jumped by 60.67 per cent to US$14.3 million in the quarter ended September 30, 2010.

The company, which earns 80 per cent of its revenue from North American markets, had registered a net income of $8.9 million in the third quarter last year.

“With a differentiated business model, we have been able to continue to expand margins and post strong growth,” iGATE chief executive officer Phaneesh Murthy said.

For the third quarter, the company posted a net revenue of $74.8 million, up from $49.1 million in the corresponding quarter last year.

“We continue to generate strong operating cash flow and our balance sheet is further strengthened with cash and cash equivalents and short-term investments of over $120 million,” iGATE CFO Sujit Sircar said.

As of September 30, 2010, the company’s cash and cash equivalents and short-term investments stood at $120.8 million, compared to $96.8 million on December 31, 2009.

iGATE, which competes with the likes of Cognizant and Genpact, added five new customers during the quarter.

The company added 120 people during the quarter, taking its total headcount to 8,278 employees as of September 30.

During the quarter, the company completed the second phase of facility expansion at its Special Economic Zone units in Chennai and Hyderabad, adding a total additional capacity of 900 seats.

iGATE has seven development centres in countries like Australia, India, Japan, Malaysia and Mexico and provides services in banking, insurance, manufacturing, retail, healthcare, media and entertainment.

The company has declared an interim dividend of 15 cents per common share, which is payable on December 28, 2010, to shareholders on record as of December 1, 2010.

iGATE’s board of directors intends to declare a further cash dividend in the first quarter of 2011, subject to iGATE’s year-end results, he said.

The company also plans to file papers with the US Securities and Exchange Commission (SEC) for raising as much as $100 million through the issue of securities, Murthy said.