Virtusa 3Q fiscal 2013 operating income increased 39% to $ 9.1 mn

Virtusa Corporation, a global business consulting and IT outsourcing company that combines innovation, technology leadership and industry solutions to transform the customer experience, today reported consolidated financial results for the third quarter fiscal year 2013, ended December 31, 2012.

Chairman, CEO Virtusa, Kris Canekeratne

Revenue for the third quarter of fiscal 2013 was $86.5 million, an increase of 7% sequentially on both a reported and constant currency basis(1). Year-over-year revenue increased 20% on a reported basis and 19% on a constant currency basis (1).

Virtusa reported income from operations of $9.1 million or 10.6% of revenue for the third quarter of fiscal 2013, an increase of 23% compared to $7.4 million or 9.2% of revenue for the second quarter of fiscal 2013, and an increase of 39% compared to $6.6 million or 9.1% of revenue for the third quarter of fiscal 2012.

Net income for the third quarter of fiscal 2013 was $7.4 million, or $0.29 per diluted share, an increase compared to $5.8 million, or $0.23 per diluted share, for the second quarter of fiscal 2013, and an increase compared to $5.6 million, or $0.22 per diluted share, for the third quarter of fiscal 2012. Net income for the third quarter of fiscal 2013 included ($0.2) million of foreign currency transaction losses compared to ($0.5) million of foreign currency transaction losses in the second quarter of fiscal 2013, and a gain of $0.2 million in the third quarter of fiscal 2012.

Chairman and CEO, Virtusa, Kris Canekeratne, stated, "This was a strong quarter for Virtusa driven by broad-based revenue growth across all of our industries and geographies. We are seeing the benefits of scale and the investments we have made in building competencies to pursue and win engagements that are at the nexus of our clients and their consumers. The successful client outcomes we are driving are opening new opportunities within enterprises, both in current and new lines of business."

Canekeratne continued, "In addition, our thought leadership and innovation in millennial enterprise enablement is creating expanded opportunities across our business and further solidifying Virtusa as a strategic partner to our clients."

Ranjan Kalia, Chief Financial Officer, said, "We are pleased with our robust performance across key financial metrics. We delivered strong revenue growth, expanded operating margin by 150 basis points year-over-year, increased diluted EPS at a faster rate than revenue, growing 31% year-over-year, and generated strong cash flow."