Virtusa first quarter revenue grows to $ 37.4 million

VIRTUSA CORPORATION a global information technology (IT) services company reported its financial results for the first quarter of fiscal 2008, ended June 30, 2007.

For the first quarter of fiscal 2008, Virtusa’s revenue increased 46.1% year-over-year and 6.2% sequentially, to $37.4 million.

Virtusa reported first quarter income from operations of $3.2 million, or 8.5% of revenue. This represents an increase of 37.8% compared to $2.3 million for the first quarter of fiscal 2007.

Virtusa’s Chairman and CEO Kris Canekeratne, stated, “We were extremely pleased to complete our initial public offering in August, marking a significant milestone in Virtusa’s history and providing the company with additional resources to fund our growth.”

Canekeratne continued, “The first quarter was a strong start to fiscal 2008. Virtusa’s differentiated platforming approach, domain expertise and optimised global delivery model are driving business results for our clients, expansion of our existing client relationships and new wins with large enterprise clients.”

The company ended the first quarter of fiscal 2008 with $39.5 million of cash and cash equivalents. The cash balance on June 30, 2007 does not include approximately $57 million in net proceeds before expenses that were raised through the company’s initial public offering, which was completed on August 8, 2007. The company ended the first quarter of fiscal 2008 with no long-term debt.

Total other income, which is comprised primarily of foreign currency transaction gains (losses) and interest income, decreased by $0.5 million year-over-year, to $0.2 million in the first quarter of fiscal 2008 from $0.7 million in the first quarter of fiscal 2007. Foreign currency transaction loss in the first quarter of fiscal 2008 was $0.3 million, compared to a gain of $0.4 million in the first quarter of fiscal 2007.