Virtusa Posts Third Quarter Fiscal 2013 Consolidated Financial Results [Manufacturing Close - Up]
(Manufacturing Close - Up Via Acquire Media NewsEdge) Virtusa Corp., a global business consulting and IT outsourcing company that combines technology leadership and industry solutions to transform the customer experience, reported consolidated financial results for the third quarter fiscal year 2013, ended December 31.
In a release dated January 30, the Company noted that revenue for the third quarter of fiscal 2013 was $86.5 million, an increase of 7 percent sequentially on both a reported and constant currency basis(1). Year-over-year revenue increased 20 percent on a reported basis and 19 percent on a constant currency basis.
Virtusa reported income from operations of $9.1 million or 10.6 percent of revenue for the third quarter of fiscal 2013, an increase of 23 percent compared to $7.4 million or 9.2 percent of revenue for the second quarter of fiscal 2013, and an increase of 39 percent compared to $6.6 million or 9.1 percent of revenue for the third quarter of fiscal 2012.
Net income for the third quarter of fiscal 2013 was $7.4 million, or $0.29 per diluted share, an increase compared to $5.8 million, or $0.23 per diluted share, for the second quarter of fiscal 2013, and an increase compared to $5.6 million, or $0.22 per diluted share, for the third quarter of fiscal 2012. Net income for the third quarter of fiscal 2013 included ($0.2) million of foreign currency transaction losses compared to ($0.5) million of foreign currency transaction losses in the second quarter of fiscal 2013, and a gain of $0.2 million in the third quarter of fiscal 2012.
The Company ended the third quarter of fiscal 2013 with $97.0 million of cash, cash equivalents, and short-term and long-term investments (2), compared to $80.0 million at September 30. Cash flow from operations for the third quarter of fiscal 2013 was $20.9 million, compared to $8.5 million for the third quarter of fiscal 2012.
Kris Canekeratne, Virtusa's Chairman and CEO, stated, "This was a strong quarter for Virtusa driven by broad-based revenue growth across all of our industries and geographies. We are seeing the benefits of scale and the investments we have made in building competencies to pursue and win engagements that are at the nexus of our clients and their consumers. The successful client outcomes we are driving are opening new opportunities within enterprises, both in current and new lines of business." Canekeratne continued, "In addition, our thought leadership and innovation in millennial enterprise enablement is creating expanded opportunities across our business and further solidifying Virtusa as a strategic partner to our clients."
Ranjan Kalia, Chief Financial Officer, said, "We are pleased with our robust performance across key financial metrics. We delivered strong revenue growth, expanded operating margin by 150 basis points year-over-year, increased diluted EPS at a faster rate than revenue, growing 31 percent year-over-year, and generated strong cash flow."
Virtusa management provided the following current financial guidance:
-Fourth quarter fiscal 2013 revenue is expected to be in the range of $88.8 to $90.8 million, with diluted EPS of $0.30 to $0.32.
-Fiscal year 2013 revenue is expected to be in the range of $332.0 to $334.0 million, with diluted EPS of $1.05 to $1.07.
The Company's fourth quarter and fiscal year 2013 diluted EPS estimates assume an average share count of approximately 25.8 million and 25.6 million respectively (assuming no further exercises of stock-based awards) and assume a stock price of $19.18, which was derived from the average closing price of the Company's stock over the five trading days ended on January 29, 2013. Deviations from this share count or stock price would cause actual EPS to vary based on share dilution from Virtusa's stock options and stock appreciation rights.
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