HiSoft Technology International Ltd (HSFT: Quote) Thursday reported an increase in profit for the first quarter, driven mainly by a surge in revenues. Following the news, shares of the company rose about five percent in after hours trade.
Net income attributable to the company for the quarter increased to $6.1 million or $0.19 per ADS from $2.8 million or $0.09 per ADS in the corresponding period last year.
Adjusted net income for the quarter was $8.7 million or $0.27 per share, compared to $4.7 million or $0.15 in the corresponding period last year.
Net revenues for the quarter grew 47.8 percent to $65.5 million from $44.3 million last year, driven mainly by strong demand across all service lines and geographic markets.
On average, analysts polled by Thomson Reuters expected earnings of $0.25 per share on revenues of $65.50 million for the quarter. Analysts' estimates typically exclude one-time items.
Chief Executive Tiak Koon Loh said, "We are very pleased to have achieved solid year-over-year net revenue growth and margin improvement in the first quarter of the year, a period traditionally representing our slowest season of the year. Our accretive growth was driven by record-high net revenue from companies headquartered in Greater China as well as continued strong contributions from our higher value-added services."
Looking forward to the second quarter, the company expects adjusted net income to be in the estimated range of $0.28 to $0.29 per ADS, and net revenues to be at least $71.5 million.
Analysts currently estimate earnings of $0.28 per share and revenues of $69.65 million for the quarter.
The company also revised upward its full-year guidance estimates. HiSoft now anticipates revenues of at least $295.0 million, and adjusted earnings of $1.18 to $1.21 per ADS.
Analysts currently estimate earnings of $1.17 per share and revenues of $288.06 million for the year.
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by RTT Staff Writer
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