IGate posts sharply higher 2nd-quarter profit, revenue

IGate posts sharp jump in 2Q profit

FREMONT, Calif. — IGate Corp. said Wednesday its second-quarter profit nearly doubled as revenue grew and the information technology and outsourcing company added more clients.

The results nbeat expectations, and its shares rose $1.03, or 7.3 percent, to $15.20 in morning trading.

“We had a good quarter and are encouraged by the strong earnings and cash flow,” Sujit Sircar, chief financial officer, said in a statement.

But he said salary increases and substantial hiring has put short-term pressure on margins.

IGate said it added four new customers during the quarter.

The company repoirted net income of $11.2 million, or 20 cents per share, in the three months neded June 30, up from $6.1 million, or 11 cents per share, a year earlier.

Revenue rose 43 percent to $66.8 million from $46.8 million.

Analysts, on average, were expecting earnings of 17 cents per share on revenue of $61.2 million, according to a survey by Thomson Reuters.

The quarter’s gross margin was 38.1 percent, compared with 38.2 percent in the same quarter last year.