Nasdaq-listed IT services firm iGate has reported a strong revenue growth for the fourth quarter and year ended December 31, 2010, beating Wall Street forecasts. iGate, which recently acquired the Mumbai-based IT services company Patni Computer Systems for $1.22 billion, posted net revenue of $81 million against $52.4 million in the corresponding period last year. The company said strong earnings and cash flow for the quarter had offset the absorption of $3.2 million post tax acquisition related expenses. Net income for the quarter stood at $14.7 million (GAAP), up 70.56%, while operating margin stood at 19.9%.
Revenue for the full year stood at $280.6 million, reflecting a growth of 45.3% compared with the previous year. GAAP net income was at $51.8 million, up from $28.6 million last year, while operating margin was 18.9%. Phaneesh Murthy, chief executive officer, iGATE said, “We rocked in 2010, thanks to iTOPS Consulting and growth in existing accounts. I am especially delighted with our strong earnings growth. However, we have to do some heavy-lifting in 2011. We have to focus on our integration with Patni and deliver value quickly.”
iGate added 82 net employees during the reported quarter, taking the total headcount to 8,360 employees as on December 31, 2010. The company also added three new customers during the quarter.
Murthy said the quarter saw “very strong earnings and cash flow” despite reporting more than $3.2 million in acquisition-related expenses.