Virtusa Corporation (NASDAQ GS: VRTU), has consolidated financial results for the third quarter of fiscal 2017, ended December 31, 2016.
Revenue for the third quarter of fiscal 2017 was $217.2 million, an increase of 3.4% sequentially and 44.2% year-over-year. On a constant currency basis, (1) third quarter revenue increased 4.2% sequentially and 48.6% year-over-year.
Virtusa reported GAAP income from operations of $6.5million for the third quarter of fiscal 2017, compared to $3.5 million for the second quarter of fiscal 2017 and $14.1 million for the third quarter of fiscal 2016.
Third quarter fiscal 2017 GAAP income from operations includes $1.9 million of restructuring charges related to certain cost savings initiatives. On a GAAP basis, net income for the third quarter of fiscal 2017 was $4.4million, or $0.15per diluted share, compared to$3.2 million, or $0.11per diluted share, for the second quarter of fiscal 2017, and $11.3 million, or $0.38per diluted share, for the third quarter of fiscal 2016.
Third quarter fiscal 2017 GAAP net income includes the impact of the aforementioned restructuring charges related to certain costsavings initiatives, net of tax.
The Company ended the third quarter of fiscal2017with $237.2million of cash, cash equivalents, and short-term and long-term investments. Cash flow from operations was$13.5million for the third quarter of fiscal 2017.
Kris Canekeratne, Virtusa’s Chairman and CEO, stated, “We are pleased with our third quarter results.We see continuing client demand across our industry groups and geographies for our Digital Transformation and Innovation and Operational Excellence solutions. Our differentiated solution strategy and deep domain expertise are enabling us to win in the market, and position us well for sustained growth.”
Ranjan Kalia, Chief Financial Officer, said, “During the third quarter, we delivered solid revenue growth across all industry groups and geographies. We expect this trend will continue into the fourth quarter, leading to our fourth quarter sequential revenue growth guidance of 4% at the midpoint. In addition, our Q4 fiscal 2017 guidance calls for strong non-GAAP operating margin accretion driven by top-line growth and SG&A leverage.
The midpoint of our fiscal 2017 non-GAAP EPS guidance is reduced by $0.04 primarily due to a change in our effective tax rate assumption.”
0 comments: