UPDATE: iGATE Q4 Earnings Miss Expectations
iGATE Corp. (NASDAQ: IGTE) reported downbeat earnings for the fourth quarter.
The Fremont, California-based company posted quarterly earnings of $38 million, compared to $33.1 million, in the year-ago period. iGATE posted a GAAP loss per share of $0.63, including $80 million paid to Series B preferred stock holders for the induced conversion and $1.7 million towards write-off of unamortized preferred stock issuance cost, versus a year-ago profit of $0.30 per share. Excluding one-time items, the company earned $0.52 per share.
Its revenue rose 10.7% to $331.5 million from $299.3 million. However, analysts were expecting earnings of $0.55 per share on revenue of $330.26 million.
Gross margin narrowed to 34.8% from 39.8%, while adjusted EBITDA slipped to $62.3 million from $74.7 million.
iGATE added 9 new clients during the quarter. As of December 31, 2014, iGATE had 33,484 employees.
Ashok Vemuri, President and CEO, said, “We are satisfied with our fourth quarter and full year 2014 results. We delivered growth both sequentially as well as year over year, a result of the differentiated industry utility-solutions, enhanced client-centricity, streamlining of our core execution, building next-gen capabilities, and committed IGATORs.”
iGATE shares rose 3.44% to close at $42.36 on Friday.
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