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Friday, 9 August 2013 00:00 - - {{hitsCtrl.values.hits}}
Revenue for the first quarter of fiscal 2014 was $90.5 million, an increase of 19% year-over-year and 1% sequentially. On a constant currency basis, first quarter revenue increased 19% year-over-year and was flat sequentially.
Virtusa reported income from operations of $8.9 million for the first quarter of fiscal 2014, compared to $9.4 million for the fourth quarter of fiscal 2013, and an increase compared to $6.9 million for the first quarter of fiscal 2013.
Net income for the first quarter of fiscal 2014 was $7.5 million, or $0.29 per diluted share, compared to $9.1 million, or $0.35 per diluted share, for the fourth quarter of fiscal 2013, and an increase compared to $6.1 million, or $0.24 per diluted share, for the first quarter of fiscal 2013.
Net income for the first quarter of fiscal 2014 included $0.4 million of foreign currency transaction gains compared to a gain of $0.2 million in the fourth quarter of fiscal 2013, and a gain of $0.4 million in the first quarter of fiscal 2013.
The company ended the first quarter of fiscal 2014 with $89.7 million of cash, cash equivalents, and short-term and long-term investments. The company used $1.8 million of cash for operating activities during the first quarter of fiscal 2014.
Kris Canekeratne, Virtusa’s Chairman and CEO, stated: “We are pleased with our first quarter results. Our year-over-year growth continues to be driven by our key strengths and differentiators that generate tangible business benefits for our clients, including our IT rationalisation expertise, industry leading transformational solutions, regulatory and compliance services, and leadership position in millennial enablement. We continue to have success extending our strategic role with our clients and as a result, we are increasing our market opportunity.”
Ranjan Kalia, Chief Financial Officer, said: “Our first quarter played out as expected, setting the foundation for strong sequential revenue growth rates throughout the remainder of the fiscal year. We remain well positioned to drive above market growth rates in fiscal year 2014 while delivering on our stated objective of meaningful operating margin expansion.”
Financial outlook
Virtusa management provided the following current financial guidance:
Second quarter fiscal 2014 revenue is expected to be in the range of $93.3 to $95.3 million, with diluted EPS of $0.28 to $0.32.
Fiscal year 2014 revenue is expected to be in the range of $378.0 to $392.0 million, with diluted EPS of $1.24 to $1.36.
The company’s second quarter and fiscal year 2014 diluted EPS estimates both assume an average share count of approximately 26.3 million (assuming no further exercises of stock-based awards), and assume a stock price of $25.89, which was derived from the average closing price of the company’s stock over the five trading days ended on 31 July 2013. Deviations from this stock price may cause actual EPS to vary based on share dilution from Virtusa’s stock options and stock appreciation rights.
