(By Balaseshan) Outsourcing company iGATE Corp. (NASDAQ:IGTE) swung to a second-quarter profit, helped by higher revenue and lower costs. However, results missed Street's expectations, sending its shares down 2.81% in premarket.
Earnings were $5.38 million or $0.07 per share, compared to a loss of $1.76 million or $0.02 per share last year. Adjusted earnings rose to $21.46 million or $0.28 per share from $11.94 million or $0.16 per share.
Revenue climbed 57.3% to $268.0 million. Analysts had expected a profit of $0.29 per share on revenue of $268.64 million.
Gross margin for the second quarter increased to 37.4% from 34.7%. The company ended the second quarter with 27,417 employees.
The company said it successfully completed delisting of Patni Computer Systems Ltd. and launched single go-to-market brand, "iGATE," in line with the vision of 'one company'.
Finance Chief Sujit Sircar said while the rupee fluctuation is a concern due to forex headwinds, the company is expected to be well placed for a steady growth in revenues and margins.
IGTE ended Thursday's regular session down 3.96% at $16. The stock has been trading between $9.32 and $19.97 for the past 52 weeks.