Virtusa ups revenue by 33% to $ 218 m in 2011

Virtusa Corporation, a global IT services company that offers a broad spectrum of business consulting and outsourcing services, yesterday reported consolidated financial results for the fourth quarter and fiscal year ended 31 March 2011.

Revenue for the fourth quarter of fiscal 2011 was $58.3 million, an increase of 5% sequentially and 22% year-over-year. On a constant currency basis, fourth quarter revenue increased 4% sequentially and 21% year-over-year.

Virtusa reported income from operations of $5.7 million for the fourth quarter of fiscal 2011, an increase compared to $5.0 million for the third quarter of fiscal 2011, and an increase compared to $3.2 million for the fourth quarter of fiscal 2010.

Net income for the fourth quarter of fiscal 2011 was $5.2 million, or $0.21 per diluted share, an increase compared to $4.2 million, or $0.17 per diluted share, for the third quarter of fiscal 2011 and an increase compared to $3.6 million, or $0.15 per diluted share, for the fourth quarter of fiscal 2010.

The company ended the fourth quarter of fiscal 2011 with $111.8 million of cash, cash equivalents, short-term investments and long-term investments. The company generated cash from operations of $6.4 million during the fourth quarter of fiscal 2011.  

For the fiscal year ended 31 March 2011, revenue increased 33%, to a record $218 million, compared to the fiscal year ended 31 March 2010.  On a constant currency basis, fiscal year 2011 revenue increased 33% year-over-year.  

Virtusa reported income from operations of $17.8 million for fiscal year 2011, an increase compared to $12.9 million for fiscal year 2010.  

Net income for fiscal year 2011 was $16.2 million, or $0.66 per diluted share, an increase compared to $12.1 million, or $0.50 per diluted share, for fiscal 2010.

The company generated cash from operations of $19.8 million for fiscal year 2011.  

Kris Canekeratne, Virtusa’s Chairman and CEO, stated: “We are very pleased with our performance in the fourth quarter and fiscal year 2011.  Our differentiated value proposition, combined with the investments we have been making in strengthening our business consulting, industry specialisation and solutions offerings, is resonating particularly well within the marketplace.  As we enter fiscal 2012, we have the strongest client base in our history, and we will remain focused on reducing our clients’ total cost of ownership, accelerating their time-to-market and improving their customer experience.”

Ranjan Kalia, Chief Financial Officer, said: “The fourth quarter was a strong finish to a fiscal year in which we achieved revenue, operating profit and EPS growth, each in excess of 30 per cent,”  

Kalia added, “Our current fiscal year 2012 guidance calls for Virtusa to continue to exceed industry growth rates and realise ongoing operating margin expansion.”

Virtusa management provided the following current financial guidance:

First quarter fiscal 2012 revenue is expected to be in the range of $59.6 to $61.6 million, with diluted EPS of $0.16 to $0.20.

Fiscal year 2012 revenue is expected to be in the range of $252 to $266 million, with diluted EPS of $0.78 to $0.94.

The company’s first quarter and fiscal year 2012 diluted EPS estimates assume an average share count of approximately 25.2 million and 25.4 million respectively,  (assuming no further exercises of stock-based awards) and assume a stock price of $18.11, which was derived from the average closing price of the company’s stock over the five trading days ended on 10 May 2011.  Deviations from this stock price may cause actual EPS to vary based on share dilution from Virtusa’s stock options and stock appreciation rights.  

Virtusa provides end-to-end information technology (IT) services to Global 2000 companies.

Founded in 1996 and headquartered in Massachusetts, Virtusa has operations in North America, Europe and Asia.