Virtusa 3Q revenue up 6% to $44.9m
* Third quarter revenue of $44.9 million increased 6% year-over-year;
10% in constant currency
* Third quarter diluted earnings per share of $0.27, year-over-year
growth of 29%
* Cash, cash equivalents, short-term investments and long-term
investments of $96.0 million
Westborough, MA - (January 28, 2009) -
Virtusa Corporation (NASDAQ: VRTU), a global information technology
(IT) services company that provides IT consulting, technology
implementation and application outsourcing services through an enhanced
global delivery model, today reported financial results for the third
quarter of fiscal year 2009, ended December 31, 2008.
Third Quarter Fiscal 2009 Financial
Revenue increased 6% year-over-year and 2% sequentially, to $44.9
million in the third quarter of fiscal 2009. On a constant currency
basis, third quarter revenue increased 10% year-over-year and 5%
sequentially (1). Virtusa reported income from operations of $5.4
million for the third quarter of fiscal 2009, compared to $5.9 million
for the third quarter of fiscal 2008 and $0.7 million in the second
quarter of fiscal 2009. Net income for the third quarter of fiscal 2009
was $6.3 million, or $0.27 per diluted share, compared to $5.3 million,
or $0.21 per diluted share for the third quarter of fiscal 2008 and $1.3
million, or $0.05 per diluted share, for the second quarter of fiscal
Other Income for the third quarter of fiscal 2009 includes a $1.3
million foreign exchange transaction gain compared to a $0.1 million
foreign exchange transaction loss in the third quarter of fiscal 2008
and a $0.9 million foreign exchange transaction loss for the second
quarter of fiscal 2009. The Company ended the third quarter of fiscal
2009 with $96.0 million of cash and cash equivalents, short-term
investments and long-term investments.
The Company generated cash from operations of $9.9 million during the
third quarter of fiscal 2009.
During the third quarter of fiscal 2009, pursuant to the Company’s
Share Repurchase Program, the Company repurchased 623,304 shares for
$2.9 million at an average price of $4.63.
Virtusa’s Chairman and CEO Kris Canekeratne, stated “We are very
pleased with our strong third quarter performance.
The challenging economic environment is precipitating clients to
improve IT efficiencies within their core business processes.
Our consultative platforming approach reduces IT costs and
accelerates realization of business results.
This combined with our industry-leading global delivery model and
track-record of service excellence provides extraordinary value to our
MillenniumIT sets up technology platform for Indian Commodity
MillenniumIT was awarded the contract for implementing the technology
platform for the Indiabulls Financial Services (IBFSL) commodity
The exchange, which has now been christened the International
Multi-Commodity Exchange (IMX), has six partners promoting India’s
fourth national commodity bourse and will primarily engage in commodity
The exchange has as its largest shareholder IBFSL, one of the largest
brokerages in India and a part of Indiabulls Group, a highly diversified
listed blue-chip company and MMTC Limited, the largest commodity/metal
trading importer and exporter in India.
IMX have now started operationalising the multi-commodities exchange
and one of the first steps in this process was the appointment of
MillenniumIT to set up and implement the technology platform for IMX.
A spokesman for MillenniumIT said the company will implement a fully
integrated end-to-end solution for IMX.
“We used our unique selling points of flexibility of the system to
adapt to changes in business requirements, superior performance as well
as an entire portfolio of products to present an end to end solution.
This gave us the edge over some leading international and Indian vendors
to win the contract. We also have an in depth comprehension of the
Indian market and hence the ability to cater to all regulatory and
The MillenniumIT platform will include trading, risk management and
market surveillance systems, trader front ends, CCP (Central
Counterparty Clearing and Settlement) and collateral and delivery
An official statement released by Indiabulls says, “The exchange is
expected to go live in the first quarter of the next financial year,
subject to regulatory approvals.”
Initially, the commodity exchange was billed as a joint venture
between IBFSL and MMTC sharing equity of 74% and 26% respectively.
However, revised government guidelines proposed single shareholder
limits to not exceed 40% of the equity, forcing IBFSL to search for
Trading company India Potash Limited is among the six partners.
The turnover in the commodity market surged 28% in the last year
paving the way for new players to enter the fray.
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