Friday, Information Technology service provider VanceInfo Technologies Inc. (VIT) posted a 50.1% upsurge in the second-quarter profit, as a result of the continued expansion of business with existing key clients. In addition, the company issued financial forecast for the third quarter, and lifted fiscal 2009 guidance.
The Beijing, the People's Republic of China-based company's second-quarter net income attributable to VanceInfo Technologies Inc. was $5.25 million or $0.13 per share, compared to $3.56 million or $0.09 per share in the year-ago quarter.
Excluding share-based compensation expense, earnings ascended to $5.61 million or $0.14 per share from $3.84 million or $0.10 per share earned in the same quarter of last year.
On average, 7 analysts polled by Thomson Reuters expected the company to post earnings of $0.11 per share. Analysts' estimates typically exclude special items.
Net revenues for the latest quarter totaled $34.6 million, an increase of 41.5% from the previous year's revenue of $24.4 million, led by continued expansion of business with existing key clients. Six Wall Street analysts had a consensus revenue estimate of $31.54 million for the quarter.
Chris Chen, Chairman and Chief Executive Officer of VanceInfo, commented, "We are very pleased that VanceInfo continued to deliver outstanding results during the second quarter of 2009, which exceeded both our top- and bottom-line expectations."
The company noted that business with its Chinese clients continued the robust growth momentum, while its US and European businesses are stabilizing and showing encouraging signs with new customer gains. In addition, the company said its disciplined execution and cost control helped it mitigate the negative impact from the economic downturn and deliver satisfactory earnings against increased pricing pressure.
Net revenues from the company's R & D Outsourcing Services accounted for 67.8% of the total revenues during the recent quarter and grew 50.8% compared to the second quarter of 2008. Net revenues from IT Services represented the remaining 32.2% of the revenues, up 25.3% from the year-ago quarter. The growth in IT Services has been negatively impacted by the soft demand for enterprise solutions business as customers cut back on discretionary IT spending during the past twelve months.
The company added that the United States continued to be its largest geographic market, accounting for $14.3 million or 41.5% of the net revenues in the second quarter of 2009, followed by 37.2% from clients headquartered in China, 15.9% in Europe, and 5.3% in Japan.
Revenues from the top five clients totaled 60.8% of net revenues in the quarter, compared to 52.9% in the second quarter of 2008. The continued strength in a number of large clients reflected the industry's trend of vendor consolidation as well as the company's solid delivery results with key clients. As business from new customers begins to scale in the third quarter, customer concentration is expected to ease in the second half of 2009.
For the six-month period, the company reported net income of $9.09 million or $0.22 per share, compared to $6.62 million or $0.16 per share in the prior year period.
Non-GAAP net income for the first half amounted to $9.79 million or $0.24 per share, compared to $7.22 million or $0.18 per share in the year-earlier period.
Year-to-date net revenues advanced 43.9% to $64.6 million from $44.9 million reported in the comparable period of the previous year.
Looking ahead, the company expects third-quarter earnings to range between $0.12 and $0.13 per share, and non-GAAP earnings are estimated to be in the range of $0.15 - $0.16 per share. Net revenues are forecasted to be at least $38 million in the third quarter of 2009, representing an increase of at least 37% from the third quarter of 2008.
For fiscal 2009, the company now expects GAAP earnings to be in the range of $0.48 - $0.50 per share, higher than the earlier guidance range of $0.46 - $0.48. Non-GAAP earnings are now projected to be in a range of $0.53 - $0.55 per share, compared to the previous guidance range of $0.49 - $0.51. Further, the company lifted its revenue forecast to at least $140 million from the prior guidance of at least $128 million.
Wall Street analysts have a consensus earnings estimate of $0.13 per share on revenues of $33.22 million for the third quarter, and $0.48 per share on revenues of $130.80 million for the full year.
VIT closed Thursday's regular trading session at $15.23.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.