iGate Corp. (IGTE), an information technology outsourcing company, Thursday reported an increase in its first-quarter profit, reflecting higher revenues and lower depreciation and amortization expenses. Adjusted earnings, excluding items, as well as revenues exceeded analysts' expectations.
In the first quarter, net income attributable to common shareholders rose to $27.15 million or $0.34 per share from $16.98 million or $0.22 per share in the previous year.
On a non-GAAP basis, earnings were $0.51 per share for the recent quarter, while the company posted $0.38 per share in the prior year. On average, eight analysts polled by Thomson Reuters expected the company to earn $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter grew 4 percent to $274.92 million, which also came in above analysts' estimate of $271.85 million.
Gross margin was 38.1 percent, lower than 40.2 percent a year earlier. Sujit Sircar, CFO said the decline in margin was due to visa related costs that the company partially absorbed in the quarter.
Depreciation and amortization expenses were $9.27 million, sharply lower than $15.29 million in the preceding year.
iGate said it added ten new customers during the quarter; six of which are Fortune 1000 companies.
IGTE closed Wednesday's regular trading at $18.09 on the Nasdaq. In the pre-market activity, the shares are up 2.82 percent.
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