UPDATE: iGate Posts In-Line Q3 Earnings

iGate

reported in-line earnings for the third quarter. The Fremont, California-based company reported a quarterly profit of $37.3 million, versus a year-ago profit of $31.9 million. On a per-share basis, the company posted earnings of $0.34, versus $0.30. Its adjusted earnings came in at $0.52 per share in the recent quarter. Its revenue rose 10% to $322.8 million from $293.4 million. However, analysts were expecting earnings of $0.52 per share on revenue of $321.92 million. Its gross margin narrowed to 35.3% from 41.4%, while adjusted EBITDA fell to $68.8 million from $78.4 million. Sujit Sircar, CFO, said, “Although we experienced some margin headwinds due to the continuing investment we had to make in some of our transformational client engagements, expanded client coverage and hiring for growth, I am happy with the increase in net income, while we continue to maintain healthy earnings growth. We lowered our debt by another $126 million during the quarter which has improved our leverage further.” iGate shares closed at $34.76 yesterday.