(RTTNews) - Information Technology service provider VanceInfo Technologies Inc. (VIT: News ) reported Tuesday an increase in third-quarter profit that also came in above analysts' estimate, reflecting a 45.2% surge in revenues. The company also raised its full-year outlook above analysts' current estimates.

For the third quarter, net income attributable to VanceInfo rose to $5.76 million or $0.14 per share from $4.33 million or $0.11 per share in the previous year.

Excluding share-based compensation and amortization of acquired intangible assets, earnings increased to $7.06 million or $0.17 a share from $4.89 million or $0.12 a share in the year-ago period.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.13 per share for the third quarter. Analysts' estimate typically excludes special items.

Income from operations increased 39.2% year-over-year to $5.96 million from $4.28 million.

Net revenues for the quarter surged 45.2% to $40.17 million from $27.67 million, mainly due to continued expansion of the company's China business. Seven analysts were expecting revenue of $38.22 million for the third quarter.

Net revenues from research and development services grew 41.9% to $23.18 million from $16.34 million. Globalization & localization revenues increased to $1.51 million from $1.16 million in the year-ago quarter.
Enterprise solutions went up to $5.02 million from from $3.96 million, while revenues from applications development and maintenance advanced 49.5% to $6.76 million from $4.53 million in the past year. Quality assurance & testing revenue increased to $1.67 million from $1.59 million. Revenues from Other Solutions & Services increased to $2.01 million from $92 thousand attributable to certain call center business acquired by the company in Hong Kong.

Gross margin dipped to 37.3% from 39.3% reflecting the one-time transitional effect associated with the Expedia, Inc. account in the latest quarter as well as the pricing pressure from several U.S. headquartered clients in 2009.

For the nine-month period, net income climbed to $14.85 million or $0.36 per share from $10.95 million or $0.27 per share in fiscal 2008. Adjusted earnings rose to $17.26 million or $0.42 a share from $12.52 million or $0.31 a share in the past year. Revenues grew 44.4% to $104.81 million from $72.59 million in the same period last year.

Looking ahead for the full year 2009, the company raised its guidance and expects earnings to be at least $0.50 on a GAAP basis. Excluding items, VanceInfo currently forecasts earnings of least $0.57 a share. The company expects to generate net revenues of at least $145 million in 2009.

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